“sell direct consumer?” – Yeah. Yeah. Well, I think yes. I think Amazon is going to be a
player where they’re basically selling directly to consumer– – AKA with their private labels
or when they’re selling Pepsi through Amazon? – I think they’re going to use
Amazon as a mechanism to sell direct to consumers but the
question is will eventually people like I want Pepsi I want
to Pepsi.com or Pepsi’s Facebook page and just get
directly from there. But that’s not really direct
to consumer because it’s going through Facebook so I think
you still need to use these platforms to go direct consumer.
– Got it. I would say that Amazon is far
less direct to consumer than Facebook because Amazon’s
actually a full-pledged retailer and very honestly I think a
scary one for these guys and gals that are running these
businesses because Amazon’s got real data. In the CPG world, retail and
brands the scariest thing is when a retailer is
gets too much leverage. The biggest brands in the world
are paying for placement in Walmarts and Albertson’s and
Costco’s and Safeway’s that are very expensive. This is not the way
was 30 or 40 years ago. The retailers didn’t have
leverage, the brands did. – Yep.
– And so that got expensive. Direct to consumer is inevitable
the problem is the following big brands like Dove or Pepsi can’t
go direct to consumer because Costco and Walmart and Tesco are
going to say what are you doing? You’re not cutting us out. The second those companies show
a move to wanting to go direct to consumer the big retailers are
going to drop their product from end caps to the bottom shelf
or kick them out of the store. Which then would affect them in
a 90 day period because their sales would collapse which
then would make the stock price collapse so they’re
basically caught in what’s called channel conflict.
They can’t do it. So what’s gonna happen? Here’s what’s going to happen. India and her mom are going to
invent the best peanut butter you’ve ever tasted and they’re
going to start going direct to consumer and they’re going to
sell on Instagram and Snapchat and Facebook and quietly but
surely because that’s where the attention is all of a sudden
their business is going to do $40 million not four
or 1.4 or 400,000. – Yep. – And then, what’s a
big peanut these days? Peter Pan peanut butter?
– [Margo] Laura Scudder’s? – What’s that?
– [Margo] Laura Scudder’s. – [Gary] Laura Scudder’s?
– Smuckers maybe. – [Gary] Smuckers right.
– Jiffy. – [Gary] Jiffy, Jiffy,
there we go. Go ahead. – Well I like grinding
the peanuts in Whole Foods. – Let’s use a soda as an analogy
then Coke and Pepsi are going to be like wait a minute
what’s this new craft soda? That’s doing real volume and
then they’re going to be stuck because they are going to
get squeezed from both sides. They’re going to get
squeezed from the up-and-coming entrepreneurs that actually now
have scale and use things like Uber and Postmates or whatever
for distribution and use social media and this for awareness and
they’re going to get pressured from the retailers for
then not to do the same. Pepsi can’t make Pepsi Gold
the direct to consumer at scale. They can do a little one
off, a little holiday thing. Tough. – Starbucks is an interesting
example because I just went to Seattle and I just saw their
new kind of innovative space. – Okay. – It seems like what brands can
do is develop or create a new product that people don’t
actually know is part of the brand and sell it direct to
consumer and see they kind of have the backup. – No, no, no.
100% they can do that. Here’s the problem, it doesn’t
matter what the consumer knows, the retailer. See the thing is most people
don’t get is the number one competitor to the biggest
brands in the world are their retail partners. – Mhmmm. Mhmmm. – So they can’t again at the
highest levels on a board at Walmart they’ll say look
what Coke just did today. They created Scmoke or Chugabuga
– And they’re selling it. – And they’re selling it and if
it gets big that’s a problem for us because it’s going to build
the cadence and the ability and the data to remarket to
those people and they’re going to cut us out. – What do you think about
the future of the store? Do you right now all the brands,
even Birchbox I know or Warby Parker, who are
disruptors, right, are like they all want stores. It’s actually the best marketing
mechanism in the world. Do you think these retail stores
are going to be the place where conversion rates are
going to happen the most? – No, I think if you look at
e-comm it chips away every year. 11 percent of the market,
13 percent of the market, 16 percent of the market. E-comm will continue to
grow especially with this. Especially with our
impatience, I want it right now. – And through
social channels too. – And whatever, right and were
not even factoring in it’s going to take 20 years for what I’m
talking and by then VR will be there so are we literally living
in a virtual world and shopping in a virtual store and it’s
actually being physically delivered within an hour? There’ll always be disruption
but here’s what I will say they’re not going away. Stores are not going away.
Stores, they’re not going away. Do I think they’re
emerging better than ever? No. Just because Birchbox
and Warby Parker have stores right now. Let’s talk about another thing
when the shit hits the fan and I mean the collapse of the
valuations of these super companies and these unicorns
that are rhinoceroses and I don’t think Birchbox is. – What’s a rhinoceros?
I know unicorn is a billion. – Yeah a rhinoceros is what
these things actually are. They’re actually rhinoceroses.
You like it? – Yeah. Like it a lot. – Anyway nonetheless I think
that too many people who watch this, too many people in
our zeitgeist-y kind of love we think things are binary that
e-commerce is coming and there will be no stores. I mean I made these
mistakes as a kid. There is no absolutes.
– There’s no absolutes. – Right? – You gotta do everything
it seems like today, right? – I would say you’ve
got arbitrage everything. If you can get a store location that
you don’t pay too much rent on, that does great branding
and awareness and your selling stuff, Mazel Tov. If you can figure out a
Instagram campaign that, you have to be agnostic.
– Right. – You have no emotion
to where it happens, you just want it to happen. – Well, how do you
afford all that though? – You don’t. You don’t.
Which is why– – I would rather have Ralph
actually do the real jobs than having him just work on social. – I get it. I get it. – It’s allocation of resources.
– That’s exactly right. – I’d rather have
Ralph do everything. He’s very capable.
– Yeah, he’s the best. – Show Ralph, Staphon, come on.
Let’s wake up here, Staphon. You saw what Kobe did.
I’m kidding, I’m kidding. I think that that’s why
strategy is so interesting. That’s why love to do
what I do for a living. – And you have to
keep reinventing. Now you’re all about Snapchat. – I’m only about attention. Snapchat just
happens to have it. – Yeah. Are you loving it?
– Love it. – [Voiceover] Matt asks,
“The average amount of

brand when first starting up mean have you watched a hundred and
seventy million things you can do i mean PR is still a basic tried and true
meaning like show up on blogs and be interviewed and job on a black and
Shobhana periscope and things you can do without a PR company in pain them to
$5,000 a year just hack go on you know this is really like this almost higher
simpson attorney Christine I’m sorry but this is like I mean this is literally
like Harry recap everything you’ve been talking about for nine years I mean I’d
almost rather you just google my name and get those answers this way but I’ll
pander to the context of a little pissed off at you India for this question makes
no sense million thinks create content you social
networks all this stuff now doesn’t cost money see the reasons why actual should
be as its layered on top of the internet and it doesn’t cost you money talent in time but it was a question
money like I wanna I wanna guest blog opening and then you talk about your
stop losing influence or send them free product have no idea what your product
or services but there’s so many ways to get exposure I get that I’m good at it
but the blueprint has been absolutely lead out for so many people its content
creation and its its content and distribution at its most basic form
content and distribution the dish machine has changed so much over the
last decade the YouTube and Facebook and Twitter’s and snapshots they all work if
you know how to use them it’s a tool right like if I don’t know how to use a
wrench if you don’t have to YouTube it will be valuable to you but what you
need to do is you need to figure out how to make them valuable or higher or
partner with somebody that will make it value for you but the ability to get
exposure now has never been easier the problem is that means everybody’s going
into that game and it filters the supply and demand attention and so now
everybody’s got an at bat and now the cream has to rise to the top wasn’t super new India that’s different
than perspectives Andrew and you what

“in your consumer’s day a
good thing or should it be “seamless?” – Excuse me? – [India] Like a beautiful interruption. If it interrupts you, but
it’s enjoyable is it good or should everything be
seamless in the consumer’s– – It’s good because you said
something very interesting there, India, in your interpretation. You said the word enjoyable. Guys, there’s only value. Seamless and interruption
isn’t the game, it’s value. If one perceives it as
valuable, then it’s a win. If the greatest looking in
the girl and the girl that Tyler loves the most in the
world jumped into this office while he was in the middle
of something and kissed him on the lips, he would be
happy with that interruption. On the other hand, if I punched
him in his face and broke his tooth, that would
be a bad interruption. That didn’t bring a
value, the other one did. It’s value, it’s not
interruption, it’s not seamless, it’s not these marketing
jargon terms, it’s value. And so, if something– You said, enjoyable. Enjoyable is a value. And so, it’s value, so if
you’re able to bring value, if somebody runs three minutes
late to a meeting because you blocked the road on
the way to their meeting, which is bad. Time is the asset, I always say. But if they valued what
happened in those three minutes more than the three minutes
they lost in the meeting. For example, if that street
was littered with rare Jets jerseys and they were free and I got them, I’d be okay with being three
minutes late ’cause I value that more. If that street was littered
with Misha performing a five minute play on the
street, I value that more than being three minutes late. If it was DRock asking me a
stupid question, I’d be upset. Even though I love DRock,
the execution of that wasn’t as good. So, the answer is, yes,
I think, to the question, which is you can interrupt
people all day long. You know, when I talk about
marketing, I talk about value much more than
seamless or interruption. That trumps everything. And it’s perceived value
by that individual. It’s not what you as a
business think is valuable. Oh, everybody’s gonna love
this because you want them to love it because you
want to sell it to them. And some people value something
that other people don’t. So, that’s just how that works out. The market decides.

“Gary, what does the future look
like for the auto industry? “Will local car dealers be cut
out of the business model?” – It’s a great question. Look, I think direct-to-consumer over a 50 year period is very real, and so, anybody who’s, including
what I do for a living, like, selling wine and liquor, like, I do believe that the
internet is the middle man, period, and I think a lot of industries just haven’t been affected by it yet. So, the hotel industry’s
been affected by it, airBnB, the car, you know, the black car industry’s
been affected by it, the bookstore industry’s
been affected by it. Systematically, over next half century, most of the things that sell to customers will be affected by it, and
I think auto is in play. I mean, look, Tesla’s selling direct, so, I think that, yes, I do think, now, I think way too many
people think about things, and they think they’re
gonna happen tomorrow. I’ve learned that,
that’s what I’ve learned. Now that I’m 40 and wise, where I was 20, I would’ve, if my 20-year-old
self was sitting here, since Brian looks 20, according to Brian, I’ll say Brian, I’ll say
Gary, 20-year-old Gary, not everything’s gonna
happen as fast as you think. And that’s the thing I’ve
learned, that it takes time, but do I think over a 50-year period? Absolutely. If you’re asking as a 48-year-old who owns a car dealership,
I don’t think you need to sell it tomorrow, but if you’re asking as a 12-year-old who wants to take over
grandpappy’s dealership, you may wanna consider going
in a different direction then you’re trying to
triple-down on the model. Bri? – I love car dealerships. Said no one ever. – That hurts. – Look, I just actually
came off some research with Google about this, and we sent in the moments of truth about the highly digital
customer shops for cars, and I think there’s an
opportunity for dealerships to be relevant to today’s society, it’s not based on yesterday’s model. – Sorry, just showing
my new kicks, go ahead. – But, if you study it is, look
up autoshopping micromoments and you will start to see exactly where you add relevance and
value to the value chain, but if you do not, Tesla-like
models are gonna take over, and it’s just inevitable, people
need to get what they want when they want it, and how they want it. – And things have been flow, like, we used to have the downtown market, like, the Main Street, American,
then we went to the suburbs, and we had, you know,
supermarkets and Costco’s, and now, more than ever, people are moving back into the cities, the
Detroits of the world, and now you have Main
Street merging again, so ebbs and flows, ebbs and flows, and so technology overlaying
that is gonna cause a lot of disruption
over the next 50 years, and I do think the direct consumer model is very real. It’s just economically
sound for the people that the take the biggest risk, who are the people that
actually make this crap. – I think that just
reminded me of Clueless,

“largely the same messaging, safety. “Is their sheer size saving
them from disruption for now?” – Yea, I’ll jump in on this
one because I’m spending a lot of time with Silicon
Valley and that’s really, what’s going on in Silicon Valley now with
start ups that are looking to attack banks, and if you look
at what’s going on in general with like Venmo and so many
other things that we’re living through, yea I mean,
I think banks have enormous infrastructure and have
a value prop, but there’s enormous amounts of destruction. I think the question alludes
to a marketing message, and I think it’s actually gonna be more of a utility message. When you start layering,
you know it’s funny, BitCoin has been not a top
of mine in the start up world recently, but block chain
mentality and just the innovation around financing
and the financial sector is going to be pretty aggressive. I actually think a lot of
bank’s messages are not necessarily just about safety. I think it’s about creating
indulgence and empowering you to do the things that you want to do. I’ve watched a lot of
the banking messaging, as we start planning on
getting into a couple of clients in that sector. I think what’s way more
important is that bank’s brands in our society are very poor,
because of what happened with the Wall Street melt down
and things of that nature, and I think a lot of banks
have been very slow to properly transition to mobile and so there’s a lot of
white space and a lot of innovation coming that, and it’s funny I can see the sharks circling around the banking sector in SF
and it’ll be interesting for the next decade. Keep it going. – [Voiceover] Alex asks, “What
do you want to be remembered

“What’s the next industry
to be turned upside down “because they aren’t
adjusting business models “to fit changes in technology?” – I mean, the answer is everything. You need the breakout product. The reason the hotel industry and the limousine service
industry have been thrown upside down is because entrepreneurs came and
attacked it full-throttle. You know, the refrigerator, appliances, smart appliances are coming
so all appliances are on-call. Retail. Brands now can go direct to consumer. So, you know, I think
we’ll see that play out over the next 10 years. TV, big media conglomerate companies have to adjust to the
over-the-top networks and all the infrastructure
they have in place to be very expensive to produce
television-like products when people can just do it like this. Or over-the-top as a
new distribution game. The internet is the middle man. Period. And so anybody who was in the middle is on-call. And that’s most things. And so I think every industry
is prime for disruption. It’s why I’m so excited
about this generation. It’s why, back to the film, it’s why I do believe
a 48-year-old who has a nine-to-six job can
do something about it from seven to two in the
morning if they wanna be an entrepreneur because
there’s so much opportunity, so ripe. So many things are convoluted. The way we get wills. There’s a start-up I got
involved with that’s incredible. Abortion. Abortion is such an emotionally
tough thing to begin with. If you’re in that position oftentimes, generalizing obviously, it can
be an offensive move as well, but when you’re going
through something like that, and then you have to go through
the convoluted paperwork where an app can solve
everything in a minute. Like, literally anything that takes time. The DMV. Like, anything that takes time that is predicated on paper or legacy or keeping humans in jobs, like toll-booth collectors. Like, come on, it’s 2016. I mean, like seriously? No disrespect and you might be watching and you are or have a friend or relative that’s a toll-booth collector. Like no joke, they could make that money doing something that can
probably do them more upside than sitting on their
phone playing Angry Birds. I mean, it’s insanity. And there’s a lot of insanity out there. And I’m excited about insanity
getting punched in the mouth by innovation. Innovation, insanity.

and then you get to fire away my friend. – My name is Dave Zhang
@drzhang on Twitter. – (mumbles) nice!
– Might as well do it. – Don’t worry Zhang, if you watch the show
it actually pops up here it’s gonna get linked up.
– [Zhang] Ding! – Yeah exactly. (group laughs) – My question for you Gary is 10 years from now, – 10 years from now. – what industry will be going
through the most disruption? So what is it going to be like in the media industry 10 years from now? – So, 10 years from now, so first of all, and I
like to say this a lot, I don’t think I’m Nostradamus. I don’t like to predict. I will tell you this, I’m gonna take your question
in a different place because I don’t really,
I mean, all of them, which is really where
I’m gonna go with this. I think that Uber, Airbnb, you know, these companies that are
really disrupting markets. Like the hotel industry is
really disrupted by Airbnb. If you’re in the limo business, your shit’s in trouble
because of Uber, right? So, these companies I think most of us, most
of the people watching think that these are anomalies, right? We call them unicorns
in the tech, VC world. And I think people think
they’re so special. I actually think they’re the preview. I think that every single company that is in existence today, that is not 100% software
technology based first, is massively vulnerable. And I think 10 years might
be a little bit too early but if you told me 20, 30 years from now, like E-com I think is much
smaller than people realize it only represents 12-13% of all commerce transactions in the U.S. That means it has, oh I
don’t know, 88% to go, right? So I think there’s a lot of industries, I think on-demand dynamics, right? Like laundromats are I think in deep shit because I think I’m gonna press a button and somebody’s gonna do my laundry. You look at what Shyp is doing
and picking up people’s stuff and shipping it for them,
which I think bodes poorly for the FedEx store. I think you can really
kind of go on anything that hasn’t been disrupted by technology really going that route. And so, I think the last 10 years so much has happened, right? This didn’t exist 10 years ago. This literally didn’t exist 10 years ago. I think the next 10 years will stun people and I think people are
grossly misunderstanding the exponential growth of
technology and software eating up our society
and breaking the norms that we’re just accustomed to. I’d also throw one other thing, I think higher education I
think is stunningly vulnerable. And I don’t think it will
be disrupted in 10 years but obviously we talked
about this in a prior show, I think once the parents stop caring that their kids go to Harvard and Yale, which I think is only one
or two generations, again, I think education is an
interesting place to look at. – Great, thank you, thanks.
– Nice shirt, man. – Cool man, let’s go!

Hey Gary, great show. Totally obsessed. My favorite thing now,
ahead of Game of Thrones. Anyway, here’s a question for you. If you had a business or a blog or a personal brand or a book, how would you get more people to know about you and to buy that? How would you get results? I guess at the end of the
day, Gary, I’m asking you how would you get results? Thanks, love the show. Gary, great question. Looking great, by the way. (giggles) Ya know, one of the things I haven’t talked about on the show a lot, I’ve talked about it a little bit, and I saw people get value from it in that local, small
business biz to dev thing is the gross underestimation
of distribution in a JV, joint venture environment. There are so many of you on this show with businesses that
have locked so heavily into social media, ’cause
that’s how you view me, as the way to get distribution, you have left some of the
greatest opportunities on the table including if you are not hitting up the
top 100 blogs in your space, if you’re selling cupcakes, and you literally aren’t
spending the time to figure out what the top 100 cupcake content
sites are on the internet, and then sending an e-mail and saying, “Hey, I’m India from India’s Cupcake Shop. “I love reading your site, Cupcake Daily,” This is me, typing the e-mail. “I love reading your site, Cupcake Daily. “I’m very passionate. “Here’s my site. “Here’s my Instagram. “I would love to write for you once a week “on new sprinkles concepts or
on decorations that matter. “I will give you my labor for free, “and what you’ll give me is
distribution and awareness.” If you don’t realize that, ya know, it’s like Kendrick Lamar. Did anybody pay attention
to what Kendrick Lamar did? If you don’t know who Kendrick Lamar is, he’s a rapper, an artist, and he went on to a lot of other albums as he was starting to get a little fame. He leveraged that to get on, and he came in trying to kill it on, like he basically went on everybody’s track and he tried to be so much better than the persons whose song it was that everybody was listening be like, “Oh shit, that guy’s dope. “Like, I’m gonna check him out.” That’s what India, the cupcake lady, wants to do on Cupcake Daily. Oh, crap, that was such a good thought. Let me follow that. And so, in the earliest
earliest earliest days of me building my brand,
I went on wine blogs and wrote blog posts to contribute, and because I had the chops, ya know, Kendrick spits incredible lyrics, India writes about incredible toppings, and I talked about
incredible things about wine that people hadn’t thought about, that gave me the ammo for my
work to have a positive ROI. The truth is a lot of you
don’t wanna put in the work because the output of your content in video form, in audio
form, in written form, isn’t good enough. You just aren’t good enough. What you’re selling, they’re not buying, and the quickest way to find out is to actually go on a road show, put in the 40 hours a day
to get yourself into places where you, why can’t you
e-mail all 500 people on YouTube that have
some level of audience and ask them to be
interviewed on their show? Or to be part of it? Why can’t you? Why can’t you ask? Why can’t you ask? Why can’t you ask? That, my friend Gary,
is what you need to do. If you’ve got something to sell, you need to go and knock on doors, right? Ya know, you gotta know how to build ’em and walk through them. You gotta knock on doors,
and you’ve gotta ask like, “Can I guest contribute to your world? “Can I write a blog post? “Can I just show up and like?” How do I bring value to what you need because all these people that have homes that have audiences, they need more content to feed them. Content costs money, so people
coming in and contributing, it’s the ultimate kind of leverage deal. You come and you write for
me for free ’cause I need it, ’cause I need to keep feeding
the kids I have in the room, and you need kids for
what you’re gonna do, and that is something that 99.999999999 of you are absolutely not doing enough of. Putting in the work to get in front of
audiences to be discovered. Putting out a picture on
Instagram and holding your breath and hoping somebody’s gonna see it ’cause you used a (censored)
hashtag isn’t enough. Go out and take it, and
that, my friend Gary, is what you should do if you
want something to happen. Two minutes.

Cheers, top of the morning to ya. And I have a question because I look like Al Pacino after a bender. I am launching the Tim Ferriss Experiment and it is a hell of a thing. (laughs) How do you think television
shows will be launched two years from now? Both in terms of distribution and in terms of commercial? That is my question
because there’s gotta be many better ways (laughs). Thank you. – Tim, great to have you on the show. I know so many of the
people in the VaynerNation are huge fans so that’s a lot of fun. I’m sure a lot of you enjoyed that. And everybody in the VaynerNation should actually check out Tim’s Tim Ferriss Experiment on iTunes. Staphon let’s link that up and YouTube. And I’m sure it’s easy
to find for all of you that are listening on the podcast and on Facebook, if you’re watching. Can one of you maybe jump in with a quick comment up when this episode pops up on Facebook and link to iTunes? Tim Ferriss Experiment. Timmy, I think that a
couple things will happen. One, I think there’s gonna be a crap load more over
the top services, right. So, you’ve got Netflix but
I think you’ve got Vimeo starting to make some noise. I expect a lot of traditional,
old-school digital leaders to get in this game. Microsoft’s gonna have to be in this game. Yahoo!’s gonna have to be in this game. I think, Snapchat is clearly
a television network. I think Facebook in a lot
of ways goes that route. I think everybody that
can own video is gonna try ’cause all the money’s there. I think launching it will happen in the way that you’re
doing it now, right? You’re asking this question
in a micro community, where I’m now giving exposure to it. And so the days of going to the Today Show or running commercials on a big show. Or trying to get print or
radio like campaigns going, there’s now all these fragmented societies and niches, Facebook dark posts. Making infographics for Pinterest. Getting a ton of Instagram’s influencers, having me on Mike’s show. I’m sure you’re probably
hitting the podcast circuit tremendously hard. You’re probably gonna
show up on 15 podcasts over the next week or two. Which is something you wouldn’t
have done 24 months ago. And there will be five
to seven other things that none of know has the
attention of the consumer. Maybe an app that comes
out on the watch, right? There’s so much coming. And so, here’s what I can tell you. I don’t predict, I react. But I do know this, in 24 months, there
will be some new shtuff. Shtuff. I almost said shit and then stuff. Shit and stuff means shtuff. That’s how it comes out of my mouth. Question of the day.

of online courses, I see
this usurping traditional institutions of education in a big way. Do you see this happening? And is there money to be made?” – What’s up, Fireboy? Quick
answer to this question is yes. You know, yes. Uber, Airbnb, Skillshare, that’s probably one of the
ones you’re talking about. There’s a bunch out– Chase Jarvis is behind one. Yes. I absolutely believe– Khan Academy, the fact that when I’m trying to learn something, I
go to YouTube and search a how-to and watch a
one minute how-to video. Information as education is a commodity, the Internet has created that platform for us to learn that way. I don’t need a teacher, as
charismatic as they may be, to just tell me the information,
what matters are opinions, interpretations, context,
not the base information. So even here, my base information is fine. How I layer the context
of the current world is far more interesting. So I
think education is massively going to be disrupted
over the next 20 years, and I think you’re
barking up the right tree.