
How I Built 12 Companies Without Investor Money 🚀 Cameron Johnson shares his incredible journey from 9-year-old entrepreneur to multi-millionaire! 💰 Discover the secrets of building successful businesses without outside funding in this...
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Cameron Johnson
I think what's going to be more interesting is whether or not people actually own cars, because right now, 95% of cars are not used on a daily. You use your car 5% of the time a day.
Interviewer
Yeah.
Cameron Johnson
And so you've got all of this expensive, if you call it a car real estate. You've got these expensive car real estate. They're just sitting in parking garages or sitting in a driveway or a garage at home all day. And so I think ultimately, you know, you could see a lot more shared ownership.
Interviewer
All right, guys, Cameron Johnson here. Our first amfest together. We're just talking about how fun it's been.
Cameron Johnson
It's been great. Great turnout, Huge event, lots of speakers. Everybody's having a good time.
Interviewer
Yeah. And you're not a beginner to entrepreneurship. Your first company at 9 years old?
Cameron Johnson
Started my first business when I was 9 years old. It was a small business, a printing company, printing greeting cards and stationary. And it was when I was 12, I started selling Beanie Babies over the Internet. You remember the craze or you might not have even been born?
Interviewer
I caught the tail end. I heard of them. I never had them.
Cameron Johnson
Okay, well, it was right in my childh. And so when I was 12, I started selling Beanie Babies over the Internet. I was making 50 grand a year.
Interviewer
Crazy. And back then. That's decent.
Cameron Johnson
It was a lot of money. It's still a lot of money.
Interviewer
But I'd probably be almost six figures right now, right?
Cameron Johnson
Exactly. With inflation these days.
Interviewer
Yeah, inflation's nuts. So those kind of fell off, though, right? Beanie Babies, Yeah.
Cameron Johnson
Fortunately, I migrated into some Internet companies that were a lot larger. But I actually got out of the Beanie Baby business only because I was heading into middle school and I didn't want to be teased or known as the Beanie Baby kid. So that's why I got out of the business. Um, but I started an online advertising company called surfing prizes.com and we had 200,000 customers in 60 countries when I.
Interviewer
Was in middle school, when I was.
Cameron Johnson
14 and we were doing a hundred thousand a week in revenue.
Interviewer
Holy crap.
Cameron Johnson
Yeah.
Interviewer
So why didn't you just drop out at that point?
Cameron Johnson
Well, I wanted to graduate high school. I did not plan to go to college because I always told my parents, Michael Dell didn't graduate college. You know, go down the list. Richard Branson didn't graduate high school. I would always cite all of these successful entrepreneurs. My parents wanted me to go to college. I went to Virginia Tech for one semester. I raised 10 million for a company I started. And then I dropped out.
Interviewer
Once. You got the money once?
Cameron Johnson
Yeah. Then dropped out.
Interviewer
Yeah. Similar to me. I wasn't at those numbers, but once I had some revenue in my business. Yeah, I think they're more receptive to dropping out.
Cameron Johnson
Yeah, exactly. I had a plan at that point. You know, it wasn't like a one hit wonder.
Interviewer
Yeah. How tough was it raising that money?
Cameron Johnson
So this would have been 1999 and so the dot com craze was still going on. Would say 2000 was really the bust. Yeah. So I mean, I actually went out to raise 5 million and my partner and I ended up being offered 10 million. We ended up turning down the venture capital though, because what we're good at is being entrepreneurs and sort of being CEOs. And if we had taken on the money, we would have been minority shareholders.
Interviewer
Yeah.
Cameron Johnson
And we saw that as, oh, well, now we're just an employee. So sure, it sounds like a lot of money, but it's not going to us. It's to fuel growth.
Interviewer
Yeah.
Cameron Johnson
And we thought that we wouldn't be calling the shots anymore, that the investors would, so we actually turned it down.
Interviewer
That makes sense. I'm too young to remember the Internet bust. I was 4 years old in 2000. Talk to us about what happened then. Did you see that coming at all?
Cameron Johnson
So I, I didn't necessarily see the Internet bust coming, but the bust was mainly companies that had no revenue. And so it was, you know, a pets.com back in the day and all of these different.com One hit wonders that were raising a ton of money, but they had no revenue. And so that was really what the bust was primarily. Um, my businesses were always profitable. I had 12 before I was 21, millionaire before out of high school. They were all profitable. But that's because our expenses were always low.
Interviewer
Right.
Cameron Johnson
I didn't go out and you see all these companies at the time that were getting these really expensive, huge office buildings. We didn't do any of that. You know, we were teenagers starting a company virtually my partners, my two partners in surfing prizes. We had never even met in person when we started the company. So we built a multimillion dollar company. We were 14 and we never even met in person.
Interviewer
That's nuts. I think operating lean is good. I was never a fan of companies raising pre revenue unless they absolutely needed the money.
Cameron Johnson
Right, right. You need to be in some specialized industry, healthcare or something else that's unique to be able to raise money pre, pre revenue just doesn't make sense.
Interviewer
But just the psychology of using someone else's money is different than how you're going to use your own.
Cameron Johnson
Totally. And I always, you know, you, you respect your own money because you worked hard to earn it. And so that's why I've never still to this day never taken outside investor money.
Interviewer
You never raise money even to this day, which is impressive. CU running some huge companies. Exactly how many companies do you have right now running?
Cameron Johnson
So I'm an Investor in probably 75 plus startup companies and they're not all startup now. Hopefully they've all grown it to some level. And then I own a chain of car dealerships in Virginia called the Magic City Auto Group. And so yeah, yeah, you're a fourth.
Interviewer
Generation car dealer, right?
Cameron Johnson
Fourth generation car dealer. So I took the proceeds that I had made for my Internet companies and I said, you know, I preached everything starting up as go lean. Right. Start from, you know, at the time it was my childhood bedroom when I started my business. But keep your overhead low and then it's so much easier to reach profitability. Right now I do the complete opposite of that. We have really, really expensive assets. You know, 50 plus acres of land across, across our dealerships, hundreds of employees. The exact opposite of everything I did growing up.
Interviewer
Yeah.
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Cameron Johnson
In the car business that's what you got to do. And yeah, it's fun. So what I did was I took those proceeds and I brought bought out all of our family members. Got it about 15 years ago. Nice.
Interviewer
You probably meet some cool people in that space at least though I've met.
Cameron Johnson
A lot of cool people that are other successful entrepreneurs growing up. My Entire life. Yeah. And then also in the car business, there's a lot of successful. There's a lot of change happening in the car business now too, which is good.
Interviewer
Yeah. So what, what are your predictions with that with electric? Like every year it gets more and more. Right.
Cameron Johnson
Yeah. So EVs are only growing at a really rapid pace. They've slowed a little bit in, in the past year, but that I'm sure that'll pick back up. What's, what's really interesting is I think what's next with self driving, you know, and we're here in Phoenix where they have Waymo.
Interviewer
Yeah.
Cameron Johnson
I took a who back from dinner last night and I've done it many times. I've been in Phoenix and I think it's going to be interesting what happens ultimately with car ownership. So forget whether it's an electric or it's an ice engine, internal combustion engine. I think what's going to be more interesting is whether or not people actually own cars, because right now, 95% of cars are not used on a daily. You use your car 5% of the time of day. And so you've got all of this expensive, if you call it a car real estate. You've got these expensive car real estate. They're just sitting in parking garages or sitting in a driveway or a garage at home all day. And so I think ultimately, you know, you could see a lot more shared ownership.
Interviewer
Yeah. I love that you're being proactive about that as a car dealer. You know, that must worry a lot of car dealers, but some might not even be aware of that, that trend.
Cameron Johnson
Well. And I like to look at it from the other angle, too. So if ultimately, if I'm not selling to the end user, well, maybe I'm the one that owns the cars, that is leasing them in the fleet to when people need them. Or maybe, maybe I'm the guy that owns the waymos that are out on their. On the.
Interviewer
You know, I took it in San Fran.
Cameron Johnson
Is that Waymo in San Francisco brand is. Yep. And then they're also here in Phoenix.
Interviewer
I couldn't believe it did. I took it to dinner, took it back to the brid. It was nuts.
Cameron Johnson
It's a third of the price.
Interviewer
Yeah. It felt unreal.
Cameron Johnson
Yeah.
Interviewer
It really like I literally got in. No one was there.
Cameron Johnson
Right. I know. You're like talking to yourself.
Interviewer
It's like, like AI is really advancing, man.
Cameron Johnson
Totally. Totally.
Interviewer
Yeah. Are you investing in AI companies right now?
Cameron Johnson
I've invested in a number of AI companies. And then you've seen, obviously, the boom. You know, I, I, I look at AI as almost similar to the 1999, 2000.com boom and.com bust, only because it's hard to know what to invest in. It's hard to know what's actually going to stick. And as much as we talk about ChatGPT and all the names that Jim and I and all the ones that we can name, who knows what's ultimately going to be, you know, the one that everybody ultimately uses?
Interviewer
Yeah. Is that why you invest in so many different companies? You're kind of hedging your bet?
Cameron Johnson
You're trying to hedge the bat and spread it around. Yeah.
Interviewer
Because if you invest in five and none of them hit.
Cameron Johnson
Yeah. And what I try to do too, is I'm usually trying to bet on the entrepreneur themselves. Right. Bet on the jockey, not the horse. Yeah. And so over time, I feel like I've gotten better and better at that.
Interviewer
Have you looked into the alternative media.
Cameron Johnson
Podcast space at all as an investment? I haven't, but I'm obviously aware and seen, seen some of these deals that have gotten done.
Interviewer
Crazy deals.
Cameron Johnson
Right.
Interviewer
Last week, hot ones. The show where they eat the spicy wings. 82 million.
Cameron Johnson
Yeah. It's insane.
Interviewer
It's nuts. Just for eating wings. And they weren't even profitable. That's the crazy part to me. Right.
Cameron Johnson
They were. Want to call. That's a bust, but a potential bust. But I mean, that's an expensive investment for something that is not profitable.
Interviewer
Yeah. I mean, they got the views, so. So if they tie the right product or service to I don't know how many views are getting a month, but it's a lot.
Cameron Johnson
Right.
Interviewer
I could see it maybe in roi, but it's a, it's a tough one.
Cameron Johnson
Yeah. That's your space. Yeah.
Interviewer
Yeah. I mean, it's good for me.
Cameron Johnson
It's definitely good for you. All these deals are good for you.
Interviewer
Yeah. These Spotify deals. Call her Daddy Rogan.
Cameron Johnson
Exactly.
Interviewer
Yeah. You listen to any shows?
Cameron Johnson
I do, which was Rogan for sure. And, and soon I'll be listening to yours on a regular basis.
Interviewer
Yeah.
Cameron Johnson
I've gotten familiar with your background and. Amazing.
Interviewer
Yeah. It's hard to be Rogan, though. I still listen to Rogan on the stage.
Cameron Johnson
Yeah, he's great.
Interviewer
I mean, a lot of his guests come on and I'm like, I'm constantly studying him. He's the goat in my.
Cameron Johnson
He is. Yeah.
Interviewer
He's awesome. 2,500 episodes. Well, what's next for you, man?
Cameron Johnson
What's next for me, you know, I always, I've been asked this question since I started my first business I had 30 years ago. And you know, I always say people used to ask what's your favorite company that you've ever had?
Interviewer
Yeah.
Cameron Johnson
And I always say the one I haven't started yet, love it. Because I'm always looking for something new and whatever the next challenge is.
Interviewer
Do you still have that same hunger you did when you were in your 20s starting out?
Cameron Johnson
I have the same hunger but I don't know that I have the same risk appetite. So I like to take risks, but calculated risks. Whereas when you're younger and you're living in your parents, you know, your room at your parents house or in your college dorm room, that's why I always encourage young people to start a business is because you can take all the risk in the world and your house isn't going to get foreclosed on, your car's not going to get repossessed.
Interviewer
Right.
Cameron Johnson
And you've got that sort of that safety net. Of course I've got a nice safety net these days but my risk appetite's probably changed.
Interviewer
I love it, man. Where can people find you?
Cameron Johnson
Cameron johnson.com and you know, a quick Google search.
Interviewer
Awesome. Check them out guys. Thanks for coming on.
Cameron Johnson
Cool. Thank you.
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Digital Social Hour Episode Summary
Episode Title: How I Built 12 Companies Without Investor Money | Cameron Johnson DSH #1076
Release Date: January 8, 2025
Host: Sean Kelly
Guest: Cameron Johnson
In this compelling episode of Digital Social Hour, host Sean Kelly sits down with Cameron Johnson, a serial entrepreneur who has successfully built twelve companies without relying on investor funding. Their conversation delves into Cameron’s early ventures, strategic business decisions, insights into the automotive industry, and his investment philosophy. This episode offers a deep dive into self-funded entrepreneurship, the evolving landscape of car ownership, and the future of technology in business.
Starting Young:
Cameron Johnson’s entrepreneurial spirit ignited at a young age. He began his first business at just nine years old.
Cameron Johnson [01:05]: “I started my first business when I was 9 years old. It was a small business, a printing company, printing greeting cards and stationary.”
Expanding Success in Adolescence:
By twelve, Cameron expanded his ventures to selling Beanie Babies online, achieving impressive revenues.
Cameron Johnson [01:21]: “When I was 12, I started selling Beanie Babies over the Internet. I was making 50 grand a year.”
Despite the early success, Cameron made a strategic decision to exit the Beanie Baby business to avoid middle school teasing, demonstrating his ability to pivot when necessary.
Cameron Johnson [01:33]: “I had to get out of the Beanie Baby business because I was heading into middle school and didn’t want to be teased.”
SurfingPrizes.com:
Cameron co-founded SurfingPrizes.com, an online advertising company that scaled significantly without external investment.
Cameron Johnson [02:05]: “I started an online advertising company called surfingprizes.com and we had 200,000 customers in 60 countries... doing a hundred thousand a week in revenue.”
Choosing Self-Funding Over Venture Capital:
In the dot-com era, Cameron and his partner were offered $10 million but chose to decline, valuing autonomy over rapid growth fueled by investors.
Cameron Johnson [03:06]: “We ended up turning down the venture capital because what we’re good at is being entrepreneurs and sort of being CEOs. If we had taken on the money, we would have been minority shareholders.”
This decision underscored Cameron’s commitment to maintaining control and ensuring the longevity of his businesses without the pressures of external investors.
Staying Profitable Amid a Bust:
While many dot-com companies faced failure due to lack of revenue, Cameron’s businesses thrived by maintaining profitability and low expenses.
Cameron Johnson [03:26]: “I didn’t necessarily see the Internet bust coming, but my businesses were always profitable because our expenses were always low.”
His lean operational approach allowed his companies to survive and prosper even as the broader market faltered.
Expanding into Car Dealerships:
Leveraging the proceeds from his internet ventures, Cameron acquired and developed the Magic City Auto Group, a chain of car dealerships in Virginia.
Cameron Johnson [05:00]: “I own a chain of car dealerships in Virginia called the Magic City Auto Group. I took the proceeds that I had made for my Internet companies and... now we have really, really expensive assets and hundreds of employees.”
Strategic Shift:
This move marked a significant shift from his earlier lean startups to a capital-intensive business model, demonstrating his adaptability and strategic vision.
Electric Vehicles (EVs) and Self-Driving Technology:
Cameron shares his optimistic outlook on the rapid growth of EVs and the potential of self-driving cars.
Cameron Johnson [08:03]: “EVs are only growing at a really rapid pace... What’s really interesting is what happens ultimately with car ownership.”
Shared Ownership Model:
He predicts a shift towards shared ownership due to the underutilization of cars, proposing innovative business models where dealerships could lease vehicles to fleets or autonomous driving services like Waymo.
Cameron Johnson [08:57]: “You could see a lot more shared ownership... Maybe I'm the guy that owns the Waymos that are out on the road.”
This perspective highlights the evolving dynamics of car usage and the opportunities for dealerships to adapt.
Investing Without Raising Capital:
Cameron remains steadfast in his belief in self-funding, choosing not to take outside investor money to retain full control over his ventures.
Cameron Johnson [04:32]: “I always respect my own money because you worked hard to earn it. That’s why I’ve still to this day never taken outside investor money.”
AI Investments:
Reflecting on the current AI boom, Cameron compares it to the dot-com era, emphasizing the uncertainty in predicting which technologies and companies will succeed.
Cameron Johnson [09:38]: “I look at AI as almost similar to the 1999, 2000.com boom and bust, because it’s hard to know what to invest in.”
Diversified Investment Strategy:
To mitigate risks, he invests in a wide array of AI startups, focusing on the entrepreneurs behind the projects rather than the ideas alone.
Cameron Johnson [10:07]: “I try to bet on the entrepreneur themselves. Bet on the jockey, not the horse.”
Continued Hunger for Innovation:
Despite his extensive experience, Cameron maintains a relentless drive to start new ventures.
Cameron Johnson [11:34]: “I always say the one I haven’t started yet, love it. Because I’m always looking for something new and whatever the next challenge is.”
Evolving Risk Appetite:
While his passion remains unchanged, Cameron acknowledges a more calculated approach to risk as he grows older and his personal circumstances evolve.
Cameron Johnson [11:39]: “I have the same hunger but I don’t know that I have the same risk appetite. So I like to take risks, but calculated risks.”
Cameron Johnson’s journey is a testament to the power of self-funding and strategic decision-making in entrepreneurship. From launching his first business as a child to navigating the complexities of the automotive industry and the burgeoning AI sector, Cameron exemplifies resilience and adaptability. His insights into maintaining profitability, the future of car ownership, and investment strategies offer valuable lessons for aspiring entrepreneurs seeking to build sustainable and autonomous businesses.
Key Takeaways:
For more insights and to follow Cameron Johnson’s ventures, visit CameronJohnson.com.
Notable Quotes:
Digital Social Hour continues to bring forward-thinking entrepreneurs and cultural icons to the forefront, offering listeners unfiltered and insightful conversations that challenge conventional thinking.