– [Voiceover] David asks,
“What are your thoughts “on Facebook and their need
to start TV advertising?” – David, great question,
and I’m really excited about answering this. You have to understand
that everything to me is an arbitrage. So for most businesses in the world that don’t have complete reach, right? TV is not the best value,
hence your hashtag. However, for a company
the size of Facebook that has reached everybody at some level, they’ve got two places
they can go left, right? Which is, and notice it’s in the UK. They can go, they can go, they’re struggling a little with 13 to 15 but they’re not going to be
able to market to them on TV. I can get them into the pipeline
where Snapchat’s winning. And then they can go
actually much older, right? If you look at the dynamics of, like, and this is not much older. But if you look at the
dynamics of 70 to 90, there’s still maybe some upside there. And TV has some awareness. I think it’s overpriced, but when you have a market cap of 225 billion, that’s a hell of a lot more interesting to actually do some TV and
have some justification over somebody who has a
market cap of 50 billion. Or 50 million, or five
million, or 500,000. Get it? So to me, I can see some justification around that tactic. You know, it may cost
them a lot more for a user but when when you’re
left to so little users, you’ve got to pay a lot more. Whereas for all of us,
there’s so many users left, we have to pay as little
as possible to have an ROI. Everything is, there is
no one size fits all. There is no absolute statements. And you’ve got to make
decisions for your exact moment, Facebook television ads in 2005,
’06, ’07, ’08, ’09, ’10 eh. 2015 in the UK market? More interesting. Guys, thank you so much
for watching the show.

“what’s your take on podcasting? “You’re playing in the
space, but not all in. “Not worth it yet?” – Brendan, great question. The only reason I’m not all
in on the podcast right now is because I’m too busy, meaning, everybody has to kind of
decide opportunity costs, and for me, I think I over-index on video. I perform better on
video, I like video more, I like this whole thing. Right, you weren’t
ready for that, Staphon. That’s what happens,
I’m rookie-ing you up. So… I’m half-pregnant because
I’m transcribing this show into audio form. Big shout out to everybody
who’s listening on the podcast ’cause I know a ton of you
are on the way to work. I think podcasting is a huge phenomenon. Obviously, the smartphone
has changed the dynamic. People can take it with
them when they’re running and working out, people are
clearly Bluetoothing it up in their cars, public transportation. Podcasting has clearly exploded
over the last 24 months. Things like Serial became
a national phenomenon. At a podcast form.
It’s fun for me to watch because podcasting was
really big in ’04 and ’05. If you think about what Ev
Williams did, he did Odeo in between Blogger and Twitter. That was podcasting. I’m all about podcasting
in its traditional form as an audio vehicle. To me, I think it’s a huge play, I highly recommend a
lot of people doing it. Let’s not forget, a hell
of a lot more people can do the audio version
versus the video version here. This takes, really, another, not another, a different dimension and skill set, one that I think I own,
thus, I go this route and then use the audio to
create two pieces of content, video and the audio form, and by the way, the podcast listeners, please hit up Twitter and
give me your feedback. I think I’ve been trying
very hard, even the opening, like, instead of saying,
“You’re watching Episode 74,” I said, “This is Epi–,” like, I’m trying to make it a
little more native for both, so I’m trying the best I
can to be podcast-oriented in the form of your question. It is a byproduct of it being video first. If I had time to do two separate shows like so many people have
asked me to, I would. I don’t see the ROI return on just audio for what I’m doing for a living right now, and so that’s this. That was, I would held up a pillow that says VaynerMedia for
all you podcast people. (mild laughter) Let’s go to the next question. – Hey, Gary, Spiker Helms here. I was wondering, if you created
a social media platform,

– So Gary Vee, this is what I wanna know. Because you have this 500 person agency, I want you to explain why people should use a digital agency? – For looks. – What’s the circumstances? When not to use it, when to use it? How do you optimize it? Well basically, give us the gist. Why use an agency? Why not cultivate all this talent inside and control it, own it,
et cetera, et cetera. Thank you, Gary. – Thank you, Guy. Guy K, one of the real
thought leaders in this space. He’s too humble to do it but I know he has a new book out and I wanna give love to people so DRock, Staphon, take
over the page here. Give him a little shout out. Let’s link it up below. One of the few authors I feel
comfortable enough in saying, check out what they’re doing so VaynerNation, check out what Guy’s doing. It’s a great question, Guy. As a matter of fact,
the answer’s even better ’cause I’m giving it. The answer is you shouldn’t. You shouldn’t hire anybody to do anything if you think you can do
it better for cheaper. My obsession with building this, DRock, get up a little bit, let’s get a little improv. My obsession with building all of this is predicated on one thing which is that I think it’s worth you to pay us to do our thing because I think I can do it better than you could do it yourself or some other agency down the street can do it for the same price or for more expensive. The arbitrage of what they cost versus us, that we’re more valuable in return and so the biggest
reasons most big companies hire agencies is the
head count on their PNL in corporate America,
in a Wall Street World is looked upon as a
negative versus outsourcing it to agencies. The big reason that a medium
sized business should do it is that they feel like
the investment is worth it and the reason a small company
or individual should do it is they’ve run out of time but the fact of the matter is, nobody should hire anybody, digital agency or, I would hire somebody to hang a picture in my house. Let me tell you why. One, I’m just not that handy. Two, my time matters to me so much and so I’d rather pay somebody
100 bucks to hang a picture than to spend those four minutes ’cause I think I know what
to do with those four minutes to make a 101 bucks, get it? That’s the game. Can somebody do it better that brings an ROI to you and that’s why agencies exist. Can we, and don’t forget this other thing, if you bring it in-house,
you become a cocoon, right? Like you’re only working on your brand, you’re only seeing it
from your perspective and you’ve lost all the other stuff. By having so many people here, I have so many different perspectives. We have so much more data across so many different brands and then we use that for execution across other brands, across myself. This team here, what we’re doing right now is giving us a North Star of
execution for other clients. I have better advice for
our clients around YouTube and podcasting because the expectations, not the expectations,
the execution, excuse me, that was funny, I rarely
say the wrong word. That was a very weird moment. And so that, my friends,
is the reason to do it. And that’s the reason
for everything, right? Like why am I, why are all these people, show Andy. He’s not feeling very well. (laughter) Why’s Andy here? Because he can do it at an ROI that’s better than I can do it. Do I have the time, this,
that, the other thing. It goes on and on and on and on and so that’s the rationale,
Guy and VaynerNation. Is it worth the investment
you put into it? Just like everything
else you do in your life. By the way, let’s link up
the movie that Staphon edited

– [Voiceover] Marius asks, “Hey Gary, can you explain in more
detail your statement from Market Makers that Super
Bowl ads are underpriced?” – I sure can, Marius. I appreciate the question just moments after I got off the set. (Gary laughs)
(people laugh) You know, I care about attention, just like the questions we just answered, and so I think, almost
everybody in America, when the Super Bowl,
at a Super Bowl party, they’re watching it, and then
when the commercials comes on you hear at parties, (hushes). The event is to consume the
commercial at the highest scale. Couple of years ago, so I did not watch both
Super Bowls that included, or no, that’s not true. The last Super Bowl that the
Patriots and Giants played in, I didn’t watch it. I just laid in my bed, silently. And it was surreal, because I knew that all of
America was doing one thing, and me and AJ were doing another thing, which was sitting in silence. And so, I remember that really
drills home the fact for me, that all of America watches this game and then watches those commercials, and the attention put on those commercials is overwhelming, and
just the bottom line is, in that arbitrage of the ROI, I truly think that when you
compare a Super Bowl ad, four or five million,
compared to other ads, hundreds of thousands, that
this return is so much greater than hundreds of thousands of
dollars, millions of dollars, that people spend on television
during the regular year when everybody’s DVRing. When a commercial comes
on, everybody’s in here. And so I think it’s
underpriced by today’s market. I just really do. I think a Super Bowl ad, if
it’s four or five million, or what they’re charging these days, I think it’s worth 10 to 20. I really do. Just the way it is. Question of the day for
#AskGaryVee four five.

– Hey GV, it’s TF. Got a question for you for all my friends in the real estate space around the world. And the question is, how much of my advertising / marketing dollars should I be spending on
salespeople, telemarketing efforts, versus direct mail, print, traditional, versus online. You know me, buddy. I’m a no-wrong-way-to-generate-leads
kind of guy. What’s your take on it? (person claps)
(people chat) – Hey, you know, TF, I
gotta tell you, I agree. I mean, obviously I push
new forward ways of thinking about selling stuff, whether
it was ecommerce back in ’96, email marketing in ’97,
Google AdWords in 2000, banners, then content marketing in 2006. I mean, people are talking
about content marketing now. I started Wine Library TV
on February 21st, 2006, to do content marketing, so
obviously all the social stuff. I’ve got peeps in the background, too. You know, I get it. Yeah, I think that if you’ve got a way. I know we’ve talked in
the past that direct mail really works for you as a channel. Agreed. Do it, if that’s working for you. I even did direct mail for Wine Library seventeen months ago, just to make sure it didn’t bring any ROI,
and it was a disaster. It was scary to me. We used to be direct mail juggernauts in ’98, ’99, 2000, where we’d get three, four, five, six,
seven percent redemption of how many fliers we’d sent out. People coming to the store. We had six people bring
the coupon to the store and we had a big value prop in it. So direct mail clearly died for us and then other places that have grown. And, SEM works, and Facebook
dark posts are working, and content clearly has worked. So, I’m a no-romance-over-the-lead
kind of guy, as well. I mean, here’s my thing, though. People fall in love with the way they’ve made their money, right, because it’s working right now. I’m thrilled when I think that Instagram and Facebook dark posts and Twitter suck. Can’t wait for that. Can’t wait for 2024, you know,
when I’m dissing on that. I’m like, it’s all about
this, the virtual reality. Great. Can’t wait, in the words of Bart Scott. And so, I think the biggest thing that I get scared about is that people get romantic
and don’t try new things. Every person watching here
should always be spending between five to twenty
percent of their money, if that’s what you’ve got, or your time, if that’s what you’ve got,
on new and innovative things, because they need to be prepping for 2016, 2018, 2022. And here’s the biggest key, TF. No matter what you tell me, your direct mail response
and telemarketing response is not as good as that
same action 10 years ago. If you were doing that same
calling in the background and that same direct
marketing 10 years ago, it would have had a bigger ROI because more people were paying
attention to those channels, their actual home phone and their mailbox, then they are now in
a world of this, this, and everything pulling away. Not to mention, the costs
are higher in direct mail because, you know, the
post office is subsidizing that loss of money. So, these are the things
that I think about it. It’s the arbitrage of
the value of the ROI, not necessarily the action itself. – [Voiceover] Damian asks,

I actually just started
at VaynerMedia yesterday, so I’m on day number two. – Newb. (laughter) Newb. I’m impressed with the hustle though, like sneaking in to the
first episode of questions on your second day? That’s an impressive start. Trying to make an impression on the boss. I, I appreciate it. All right. What’s your question? – Okay, so my question is, so you know how Facebook reach has been going down. – Organic. – And this is the lowest
levels we’ve ever seen. – Yep. – So, I’m curious, what do
you think is the role of organic or unpaid content where the brand is always on
strategy, and the second part– – Within a Facebook world? – Within the Facebook world, and the second part of the question is, just how much reach is
enough to actually justify the time, effort, and
resources that go into producing these assets? – That’s a great question, man. Nice start. Um, you know I think it all depends on size, scale, and objective, right. So I think the biggest problem
that everybody makes is there’s no one size that fits all. Obviously, the brands
that we work with here are at huge scale, versus let’s say a lot of people watching who’ve got a small business. You know, we manage some brand pages that I can think of right now, that are so large in overall size and have done a good job
putting out great content that they’re still getting
hundreds of thousands of impressions organically
without paid up front. Now obviously, all of you have heard me ranting about dark posts for quite a bit. And we even talked about this
when you were interviewing. So for me, you know,
do I feel that Facebook has evolved into a place
that you want to look at 80, 90, even 100% of your posts are being preplanned to its audience and then paid upfront? You know, if you’re a fortune 500 company I do believe that that justifies the case. And I believe that
because I actually think that those working media
dollars, those paid dollars, are a hell of a lot
better spent on Facebook, than they are on traditional
banner or things of that nature places and organizations that you can from giving those kind of advices. So, I think that that’s the case. Now, what’s the threshold? I think that comes down
to the objective at hand. Look you can be a Fortune 500 Company, only reach 16 hundred people organically, but try to be selling
something that’s $10,000 as a B to B product and if you convert four people, and you’re making $40,000 on it. You’re profit margin is 50% and you’ve made $20,000 in profit, and your agency charged you $800 or $1800 well then you justify the means. So I think it’s, one of the biggest things that we try to do here, and one thing I think all of
you need to pay attention to is how do you become
efficient on the back end. I think what’s separating us, and what I’m excited about here, is we’re producing quality
content at a cost level that the market has
never seen before, right? And that’s out advantage, right? That for you, with fresh eyes, is probably the difference
that you’re seeing. That’s what you guys have to think about. For a lot of entrepreneurs
that are watching, and I know that’s a core
of my audience, is is your time worth it. Because it’s not a money
game, it’s a time game. So it’s always resources. To me there is no one size fits all. For all the brand managers,
and the CMOs and the CFOs and the corporates that
are watching the show or listening to the show, I know for a fact that they need to really look at just the math, right. Like, am I paying more
that what I’m reaching. So if you’re paying a
traditional digital video shop $10,000 to make a video, and then you post it organically and it reaches 900
people, that’s off, right. So, I just think that you have
to look at it case by case. – Yeah, yeah, that makes sense.

“I know you hate talking about ROI, “but how do you show someone
there’s a true return “on your efforts on social media?” (sighs) – Well, how did he set
the question up again? “I know you hate talking.” – [Steve] I know you
hate talking about ROI — – Yup. – [Steve] but how do you show someone there’s a true return on your efforts — – Robert, I love you for this question. DRock, definitely edit this
out and make it one question. It’s called “ROI of Your Mother, Part Two” because I want to put this
right to bed once and for all. The “ROI of your Mother”
concept is to make fun of traditional media ROI, not to get away from social media ROI. I, Robert, I love to talk
about the ROI of social media. I don’t want to run away from it. I’m all-in on it. Once and for all, I wanna talk about this. I love ROI. I sell stuff. It’s what I do. Nothing matters to me otherwise. No marketing media reports, no rewards, no AdAge mentions, that’s
not what I play for. I wanna sell coffee, I wanna
sell cheese, I wanna sell wine, I wanna sell gadgets,
I wanna sell sweaters. I wanna sell you if you let me. That’s how I roll. And so, how do you prove it? You prove it. Meaning, there’s a lot of ways to do it. I don’t know what you’re trying to sell and I know a lot of brand
managers from big brands kind of follow me and watch me here. It’s very easy to prove
the ROI of social media. When we post the T-shirt
that we want to sell, let’s link that up. By the way, never got
around to posting T-shirts, so now it’s 20 bucks not 14,
the reverse engineer thing. I apologize, VaynerNation. We see the sales. When I post, when we run
dark posts for Wine Library, we see the sales. When we ran that campaign
for that one organization, we got 2400 sign-ups, versus
the 60 sign-ups they got for doing YouTube videos
and billboards and all that, and they spent 10 times more there. It is very easy, my friend, if you have the direct channel connect. What I mean by that, I
don’t know what that meant, it just spewed. But if you can prove
it out on the back end. So for example, let me explain. For most of the clients we work with, when you’re a CPG company, and you sell your product to
Walmart and then they sell it, it gets hard to prove the ROI of a post. But when you’re Gary Vaynerchuk and you have winelibrary.com
and you post it, and it goes directly back
to you, you can see it. Guys, the only reason
I have so much bravado is I’m seeing the math. I come with bravado when
I have intuition, right? But I’m always hedging. Watch my narrative. I’m always like, “There’s
something happening here.” Look what I just did with virtual reality. I’m nuancing it. Yes, I’m making, I’m hedging, but I’m still making a commitment. But the insanity that you’ve seen from me on Facebook dark posts,
or the emerging insanity on Pinterests’ ad product once it gets a little bit more price
effective in that scale, that’s nothing you’ve seen
from me since maybe 2009 “Crush It!,” when I really
believed in YouTube because I was feeling it. Guys, I’m feeling it right now. How do you prove the ROI? You create a connective
tissue to show you that this thing did that. Now that’s direct response selling, right? That’s D.R., and that’s fine. I’m a branding guy. You need a mix. Because if you keep throwing right hooks, it has diminishing returns. But it’s never been more easy to prove the ROI of social
media than it is right now, because you can just link it directly to the dot com attribution,
whereas you cannot do that for print, outdoor, radio, or television. You just can’t. You can’t do it in the same exact way. You can create a call to
action in those commercials, and you could track it,
and you can and you will, and that’s why those channels
matter still as well, but it’s very easy to put a
link in any piece of content, even an Instagram where
I put in my headline, you guys know what I’m talking about. So, you know, misnomer. I do like talking about
the ROI of social media. I just don’t like that
it’s not understood that it’s more obvious to track
it than it is in traditional. And more importantly, I don’t wanna talk, turn, t-t-t-turn all of you into direct response sellers, because then you’re far
too much right-hooking. So a lot of times the
best pieces of content are engaging and jabbing where there is no link
out to a call to action, so there’s a drop in the
correlation of sales, but you’re doing the better
overall thing for the brand. My friends, it’s branding and marketing, not just sales, but social
media can show you sales. – [Voiceover] Roberto asks,

What are your thoughts
on using Kickstarter to start a business? – Mount Dream. I wanna climb that mountain. Mount Dream, Kickstarter. First of all, I think it’s a
great way to start a business. Tons of people have started businesses on the back of Kickstarter. Didn’t Oculus Rift start
on the back of Kickstarter? And sold for two billy on Facebook? So, what do I think?
I think it works. Here’s what else I think. I think there’s a lot of people that put shit businesses on Kickstarter. This is a classic question of, do you think this
platform can work to do X? The answer is always yes. Especially when it’s already happened. The problem is, do you suck at it? Do I think people can make a million dollars selling on Ebay? Yes. The talented ones. Do I think you can make a lot of money by making YouTube videos? Yes. The talented ones. Do I think that you could become a Vine celebrity on Vine and make lots of money, millions? Yes. The talented ones. And so over and over, my classic, do I think a basketball has an ROI? I do. LeBron makes a shit, LeBron will be a billionaire
because of a basketball. That’s the ROI of it.
I will not. So, can Kickstarter be a great platform to kick off a business? It can, but people that have
bought into this notion of, Oh, it’s easy!
Just go on Kickstarter, people are gonna give you money, and then you start a business! They’re lost.
L-O-S-T, lost. And that is the problem
in our society right now, all of this (bleep) works! Do you have the talent to execute? – Yo, what’s up, Gary?
And DRock, of course.

for vetting clients,
specifically at VaynerMedia?” – Dan, answer number one. Do you have enough money? Dan, answer number two. What I’m really looking
for, to not make a joke, and you know, this show’s putting
me in a better mood, guys. I gotta be honest with you. I forgot that that’s what
Wine Library TV did for me on these Mondays where I want
to annihilate people’s souls. Putting on a show with my
community does help my feelings. I need a lot of comments on
this episode, by the way. I need comments in there. I need, I need, comments. Anyway, you know, the things
we’re looking out for is, are they creative? The number one thing I’m scared of is we have a ton of creativity and we can do real work. But if people want to
follow a very strict process of how they’ve always done it versus how we’re supposed to do it. I’m petrified in that. So really there’s no way to do it, because everybody says
they want to be innovative and do the new thing and
invest in the future. And then you get into practicality and the first thing
that’s cut is the future, which is why so many people lose. So everybody’s into defense versus offense when times get tough. For me, when times get
tough, you go harder, not eh. Anyway, so I’m trying to sniff out if people have the
stomach to be innovative and do things differently. To take some risks, but be practical, but have a little more
patience for that practicality and that ROI to present itself. – Gary, I’ve got a very
serious question for you.

Entrepreneur on Fire here, and I have a #AskGaryVee question. Pareto’s Law states that 80
percent of our desired outcomes come from just 20 percent
of our activities. Do you agree with this? If so, what’s your 20? – That’s a great question. I think a lot of people
have brought that up. I know a lot of people in our
organization believe in that. I’ve heard a lot of
people believe in that. You know, do I believe in
that and what is my 20? John, first of all,
congrats on your podcast. I probably think weirdly enough that it might even be more extreme. There’s a big part of me that thinks it’s probably closer to 98 and two. Then there’s another part of me that believes it’s two and 98. I am the kind of person
that doesn’t give a crap about other people’s laws or principles. What feels right for me is execution. I think when people start knowing… This is kind of what I talk about, my naivety or lack of knowledge helps me. I think if I knew about this law prior to you bringing it up… I mean, I’ve heard about the 80/20 rule, but I didn’t know the official name. If I knew about this law, it would actually make we
want to play within that law, and then that would probably
take away from the strength that I create every day. People asked me what the ROI
of the #AskGaryVee show is a couple episodes ago. You hardcore watchers know, and I say, “Well, this is
selling my fourth book.” Here’s what I think. I think human beings
overthink shit, right? And try to buy into some sort of thesis, read a book that makes them feel good, whether it’s Crush It! or Pareto’s Law, or whatever it’s called, and I think that is a fundamental problem. I think when we start
coming from what’s authentic and what feels more natural… You know, the law I believe in is that my mom and dad
had sex at a moment, created me, and I’m taking
this DNA to the finish line. That law. That’s the law I believe in.