- On this episode, Staphon, India, and I
wear the same clothes, I talk about drinking,
and where Instagram's going.
(hip hop music)
You ask questions and I answer them.
This is the #AskGaryVee Show.
Hey everybody this is Gary Vay-ner-chuk
and this is episode 181 of the #AskGaryVee Show.
Had a good solid episode yesterday.
It was good to get back on the saddle.
First time we're going back to back in a minute.
What's up Periscope?
Good to see the Aussies in the house.
Looking forward to our interview in a few minutes.
Good to see the actual book.
This was the galley I kept showing you.
This is what you send to people.
I guess it's not the fully corrected book.
The actual book is in place now.
Look at this.
Casey's--
DRock, you must love this.
Casey's in the back cover.
And my favorite part--
Did you get it DRock, you good?
Good.
My favorite part, the Jets t-shirt is on the binding.
I gotta say I mean this is a--
I actually wanna see if we can pick up--
Can we like find the Thank You Economy and Crush It!
I'm curious if this is bigger.
I feel like it's bigger than both of them combined.
By the way the index I just looked at,
I like that yik-yak is on page 155 and 171 to 172.
Oh Zucks made it, page 170.
How about this?
- [Everyone] The crossword.
- This is gonna be interesting.
First person to fill out the crossword puzzle correctly
and take a picture of it and get it to me wins.
Something.
India you well?
- Yeah I'm well.
- What's been going on?
- Nothing much just working on this giant Twitter article
that's coming out later today.
- Is it?
- Today, today.
- Wow you made me eat my words.
- I did I was really excited about that.
- You feeling good Staphon?
You contributed?
You got some video action?
Alright good.
I'm ready for the show.
I'm feeling really really good actually.
Yeah.
- Here's one for Patrick.
- Oh by the way Boston looks locked and loaded.
March 10th I think it is.
Then March 9th?
Actually you've got my phone.
Give me your calendar.
You can get into the first question India.
The 11th is Friday so I was right, right?
Yes March 10th.
It'll be the night of March 9th.
March 9th, Boston, locked and loaded.
We haven't locked and loaded it yet.
I'm 100 percent doing a book event there.
Just gotta find the person that's gonna pony up
5,000 books to host me.
Or 3,500.
Or beggars can't be choosers.
It might be 2,700, we'll see.
But it will happen Boston.
I'm coming, I'm wearing a Jets jersey and I'm ready to go.
Alright let's do it.
- This is from Patrick.
- Patrick.
- Hi--
- By the way India, wait a minute.
What. what?
- Wait, wait.
- Look at this.
Oh Staphon get in here.
What?
- We're wearing maroon.
- This is a maroon explosion.
I'm very proud of us.
We didn't even text each other in the morning.
- We didn't like we usually do.
- Like we always do.
181 is the maroon explosion.
- What are you wearing on the show today?
- Alright let's do it.
- Alright Patrick.
- Patrick.
- [Voiceover] Patrik asks, "Hi man, what do you think about
"Instagram in the next 2-3 years from now?"
- I think that Instagram will be easily
one of the top two social networks in America
and globally will be a major force.
I think that Facebook and Snapchat are the only two things
that compete with it.
And I think that anybody who right now
isn't spending a disproportionate amount of time
trying to figure out the hashtag culture,
the Instagram ad product, the organic Instagram posting,
working with Instagram influencers is making a huge mistake
to not set their business off properly
in a 2018-2019 world.
So massively bullish all-in.
It's one of the biggest reasons I think all of you
whether you can only afford one share or a thounsand shares.
I think Facebook does extremely well
because of the revenue that we haven't
even seen the real revenue come in from Instagram yet.
It's a beast.
It is the current social network of the moment
for 28 to 40 coast Americans.
22 to 35 other parts of America.
And I just think it's an incredibly important platform
and I'm very very bullish on it.
And as somebody who daytrades attention,
by the way we have to write my daytrade attention article.
It's time.
I think it's massively important.
I'm buying it now.
I don't predict for two years but that's my intuition.
And by the way here's a good time to chop this in DRock.
Show this.
Facebook acquires Instagram.
Oh Staphon.
- Gary Vaynerchuck who's the co-founder of VaynerMedia
back in January predicted the purchase of Instagram by
Facebook and today Facebook founded by Mark Zuckerberg
shelled out a billion dollars for that very service.
That was when I was on the Piers Morgan show on CNN
the day Facebook bought Instagram.
I made that comment, and everybody on Twitter
said I was an idiot because Instagram's only 500 days old.
But Zucks did--
Instagram's probably worth 50 billion dollars right now,
maybe more.
So when you buy it for one, you did well
because those are billions.
You know it's not just a 50x.
When you 50x eight bucks,
it's nice to have 400 bucks.
When you 50x a billion,
that's 11 Jets teams.
- Patrick two, another Patrick.
- Patrick also.
- Also named Patrick.
- Okay Patrick.
- [Voiceover] Patrick asks "If TV is the radio and phone
"is the new TV, what is the desktop computer?"
- I'm not sure.
- Next?
- Yes.
- I mean you know I can't just give those
kind of answers on the show because there's so few answers
ever in history
and who knows if I want to do an #AskGaryVee book two.
The desktop computer.
I mean I think you know, the TV, the radio.
What's the desktop computer?
I don't know like the biggest magazines
and print articles.
You know the Wall Street Journal, New York Times,
Sports Illustrated and Time magazine in 1992.
It was a major thing.
But the phone is just a proxy to the internet
It's the delivery mechanism.
so really you know what, actually I got a much better one.
See this is why I took it.
The desktop computer or the laptop was the
black and white television.
The mobile device is the colored television.
Because they're both delivering the internet.
It's the internet that is what I'm talking about.
The phone just happens to be the you know.
- What about the other way?
- India this is not the ask India show.
You can go do this with everybody else after.
You can do what everybody else does, ponders.
We don't do that.
- I was wondering if that's what he meant.
- Oh one more time.
Well we don't wanna screw up the question.
- TV is the radio, and phone is TV.
So what is the next desktop computer?
- No I think he was asking for historical.
- From Will.
- Will the thrill.
- What do you think is the best market--
- Do you think that Will at home is like
oh he called me the thrill
and now he's gonna get his boys to call him the thrill.
- [Voiceover] Will says "Hey Gary what do you think is
"the best market for a teenager to start selling things?"
- Instagram and Snapchat.
Instagram and Snapchat.
Instagram is really happening.
I mean there are kids on Instagram making bank
selling sneakers.
Like tens of thousands.
Do you know how much money I would make
if I was born during this era?
If I was 13 now.
I used to have to go to the store
and I didn't have a license.
Like and buy shit and then flip shit three weeks later
on a Saturday.
If I had real time marketplace dynamics
and I could buy stuff.
UPS and Fed-Ex guys would be my homies.
Stuff would've been coming in and out like ridiculous.
So Instagram and Snapchat because that's
where other teenagers are spending their time
and I do believe that most teenagers
best opportunity to sell shit is to sell to other teenagers.
Of course they can sell to other demos
but I think the biggest up side is there.
And I only know this.
The only reason I answered Instagram so quickly
is I know dozens of kids, which is a lot off the top
of my dome of kids making thousands of dollars
slinging sneakers.
And that's just sneakers.
I've seen the video games because I like that
for old school video games.
There's a lot of oppurtunity.
Instagram is a beast for selling stuff.
- [Voiceover] Phillip asks "When you go out for some drinks,
"how many do you have and still stay productive
"the next day?"
- Phillip I don't drink that much.
Though it's funny I actually said this the other day
in a conversation about my life
which was I don't think I would've ever drank alcohol,
just like a lot of people reacted to the fact that
on the show the other day, or somewhere.
DailyVee or whatever I said that you know
I've never done any drugs, I've never even
smoked a cigarette.
I don't think I would've ever drank alcohol.
I didn't have my first beer until I was 19.
And I probably drank like 20 of them.
Like I used to, talk about milking a beer at a party.
Like when you were 20.
My shit was like not warm, it was like a hot spring.
Like I don't really love alcohol.
I learned to love wine.
I weirdly started liking really well made mixed drinks.
Like the bartender culture of New York helped that.
So like bourbon, things of that nature.
But I don't love alcohol.
What was the question?
How many drink?
You know what actually does get me drunk?
The last few times I've been drunk.
Sake.
I love sushi so much.
It's in such little portions
and usually when I have sushi, for some weird reason
it's usually a Friday or Saturday night
and I'm usually with Lizzie or very close friends
so I'm more relaxed and I go.
And sake gets me twisted.
But besides that I don't know.
By the way, right now I'm on a hardcore diet.
I don't know if you guys have noticed
but I've lost a good 5 pounds in the last three weeks.
Have you noticed a little bit India?
- Yeah.
- Thank you.
And so yeah I really have to say that nothing really
gets me excited about drinking alcohol.
It's not really something that's part of my culture
so I'll drink a glass of wine or two
when I'm not in this hardcore diet stuff.
And it's super easy to be productive
because I grew up.
From 22 to 30 I was tasting 100 wines a day.
My tolerance is stunningly through the roof
because of that.
So yeah that's it.
- It's probably also stemmed from drinks meeting,
drinks meeting, and you have like 10 a night.
- Yeah they're all drinks meetings
but last night they were all seltzer with lemon and lime.
- Last one from Matt.
- That's it? - This is the last one yeah.
Four? No, I did five.
There were two people named Patrick.
- I know that thank you.
- [Voiceover] Matt asks, "What are your thoughts on
"employee retention in the digital marketing industry?
"Is the high turnover normal?"
- The reason there's high turnover in my
industry agency life
is because most companies are owned by holding companies
who are required--
So there's four major holding companies in advertising.
They've consolidated and bought up all the agencies
and they are these big billion dollar conglomerates.
And I don't know everything about it
because I haven't really studied it
but they're big holding companies which tell companies
like VaynerMedia, great companies like 72 and Sunny,
Great Digital shop and TV Shop.
Like Jeroga 5 just got sold, great company.
360 I.
Carrot that got bought by Vice.
They're owned by holding companies
who tell their CEO's,
usually the guy or gal that looks like me
that's sold the company for a lot of money
to get up front but then you have to earn it out.
Then you're locked in because half your money's
gonna come after four years.
So you gotta keep the job, golden handcuffs.
Google it if you don't know what I mean.
And so they tell them you have to run your company
at a 27 percent gross margin
or 23 percent gross margin.
You know if I had to do that tomorrow
because I wanted the big cash out
I'd probably have to fire 100 people.
And then what happens is the inevitable thing
that looks like this.
You know you have a superstar youngster
that's growing up within the organization.
And you guys have lived this.
So many have gone from making very little
to making more and more and more, right?
You inevitably don't promote them for a year or two
because you can't afford to because the only rule
is you've gotta make 23.7 percent gross profit.
The only rule.
And so the reason there's huge turnover
is because the best people don't get compensated
fast enough.
Nobody who's running the company has long term ambitions.
Because they've already sold out
and they're trying to stay there for 3-4 more years.
And maximize their bonuses and their money
so they're making the decision.
And so like anything in life everything stems from the top.
That's what I always say on the show
and what I said yesterday in front of the whole company.
Everything is my fault.
And that's true in these scenarios
so this has been a huge advantage for my company.
I'm able to do what I'm doing because
I want to build and evergreen company forever.
So I'm able to treat--
I'm able to deploy meritocracy.
And if that comes in my expense, it comes
in my short term expense.
But fifteen years from now out of happiness
and financial, I'll win.
So that's why that's happening.
And because they don't want to pay
and because they run a margin they do a lot of things.
They don't compensate people properly.
They leave.
They burn good people to the ground.
You know what goes on here.
You're in the trenches.
If somebody's on a hardcore account that's tough
you know we usually get them out of there a year later
because they're just dying
but those companies don't usually do that
because they need to maximize.
And they're actually incentivized to let you quit.
Because they're gonna replace you for less.
And you know so that's that.
So the question was?
- What are your thoughts, is high turnover normal?
- Yeah it's normal.
Becuase most of the companies are vigged in a game
that creates a scenario for high turnover.
So in general I'm trying to push you guys 181 episodes deep
if you've been along the ride
or if you're 20 episodes in or if this is your first episode
the concept of the show is to always level up the thinking
behind business and entrepreneurship.
This is an insight to why it happens, right?
Everything stems from the top.
Always and forever, I promise you.
Your manager who sucks crap.
The fault of that situation is the CEO.
That's it.
Always blame the CEO.
Because it's the CEO's fault.
Cool.
Question of the day.
Do you like your CEO?
You keep asking questions.
I'll keep answering them.
What's Andy doing?
- Being a creepo.
- What're you doing?
- Trying to get face time.
- Trying to get some food with Alex?
What you need a buddy to get lunch?
- No.
(laughter)
(outro music)