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Gary Vee: $2 Billion Dollar Taco, Live Shopping, and Customer Service | E134 - In Search Of Excellence | Wave AI Podcast Notes

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Gary Vee: $2 Billion Dollar Taco, Live Shopping, and Customer Service | E134

In Search Of Excellence

Tue Oct 22 2024

Summary

Podcast Summary: In Search Of Excellence – Episode E134: Gary Vee: $2 Billion Dollar Taco, Live Shopping, and Customer Service

Host: Randall Kaplan
Guest: Gary Vaynerchuk (Gary Vee)
Release Date: October 22, 2024

Introduction

In Episode E134 of "In Search Of Excellence," host Randall Kaplan engages in a profound conversation with Gary Vaynerchuk, a renowned entrepreneur, investor, and CEO of VaynerMedia. The episode delves into Gary's entrepreneurial journey, his strategic investments, insights into emerging business trends like live shopping, and the foundational importance of exceptional customer service. Through personal anecdotes and professional experiences, Gary provides listeners with valuable lessons on achieving excellence in both business and personal endeavors.

1. Gary’s Early Investments in Twitter and Facebook

Gary Vee recounts his foray into angel investing, highlighting his first significant investments in Twitter and Facebook.

Twitter Investment:
Timestamp [00:00] Gary shares, "One of the first videos I ever made was called Facebook. Should [people] be worried about Twitter because Twitter just come out." He details how he met Blaine Cook, Twitter's first CTO, and convinced him to sell his shares. Alongside Fred Wilson and Kevin Rose, Gary purchased these shares, marking his inaugural investment.

Gary Vaynerchuk [00:31]: "And he left $2 billion on the table."
Facebook Investment:
Timestamp [21:11] Following Twitter, Gary's video about Facebook goes viral, leading to a connection with Mark Zuckerberg. Encouraged by his family's offer, Gary invests 80% of his savings into Facebook.

Gary Vaynerchuk [21:50]: "I literally took 80% of my savings and invested in Facebook."

These investments not only solidified Gary's reputation as a savvy investor but also laid the financial groundwork for his future ventures.

2. Insights on Live Shopping and Business Trends

Gary emphasizes the transformative potential of live shopping on social platforms, drawing parallels to early internet trends like email and Google AdWords.

Timestamp [01:34] Gary states, "I see live shopping as it's going to be massive... it's at the tippy top of my list."

He likens recognizing and capitalizing on such trends to having "the nuts in poker," asserting his confidence in the dominance of live shopping.

Gary Vaynerchuk [01:45]: "Live shopping is going to get too big... I have the best hand."

Gary's forward-thinking approach underscores the importance of anticipating market shifts and leveraging them for business growth.

3. Exemplary Customer Service Story

One of the pivotal moments Gary shares is his hands-on approach to customer service, which became a cornerstone of his business philosophy.

Timestamp [04:54 – 09:37] During the busy holiday season at his family’s liquor store, a customer’s order mishap prompted Gary to take immediate action. Despite the extreme workload, he personally delivered a case of Behringer White Zinfandel to an elderly woman to ensure she received it by Christmas.

Gary Vaynerchuk [05:08]: "I decide to make a huge to-do about this case of Behringer White Zinfandel... because we have the best customer service in the game."

This act not only exemplified his commitment to customer satisfaction but also instilled a lasting culture of exceptional service within the company.

4. Development and Success of VaynerMedia

Transitioning from the family business, Gary discusses the creation and exponential growth of VaynerMedia.

Timestamp [13:05 – 15:06] Recognizing the lag in corporate understanding of social media, Gary founded VaynerMedia in a conference room which has since grown into a $350 million-a-year revenue company with over 2,000 employees.

Gary Vaynerchuk [14:17]: "VaynerMedia is something I'm very proud of... it's been an incredible incubator of talent."

His strategic vision and ability to anticipate digital marketing trends were instrumental in VaynerMedia's success.

5. Philosophy and Approach to Angel Investing

Gary elaborates on his evolving criteria for angel investments, emphasizing the importance of both the idea ("the horse") and the entrepreneur ("the jockey").

Timestamp [21:07 – 25:35] Initially prioritizing innovative ideas, Gary shifted focus to include the capability of the operators behind them. He highlights the necessity of investing in ventures where both the concept and the team possess strong potential for success.

Gary Vaynerchuk [22:03]: "Now I look for the jockey and the horse, the operator and the idea."

This balanced approach ensures that his investments are grounded in both innovation and reliable execution.

6. Content Creation and Publishing Success

Gary reflects on his influential books and the role of content in modern marketing.

Timestamp [26:10 – 28:15] Discussing "Jab, Jab, Jab, Right Hook," Gary emphasizes the strategic creation of valuable content tailored to each social media platform. He argues that individual organic posts can surpass traditional advertising in effectiveness.

Gary Vaynerchuk [27:10]: "The best social media organic post is a more important form of advertising than any television commercial."

His work underscores the shift towards content-driven marketing strategies in the digital age.

7. Traits and Ingredients of Success

The conversation shifts to the essential traits that drive success, with Gary advocating for work ethic as the most controllable and impactful factor.

Timestamp [28:22 – 30:30] Gary asserts, "Work ethic matters, not burning yourself out and being sick. That's stupid." He contends that a strong work ethic, coupled with passion, forms the foundation for achieving excellence.

Gary Vaynerchuk [28:22]: "I believe people can do the same professionally."

His emphasis on discipline and perseverance serves as a motivational blueprint for aspiring entrepreneurs.

8. Personal Reflections and Advice

In the latter part of the episode, Gary shares personal insights and advice based on his life experiences.

Timestamp [30:48 – 39:36] Discussing preparation, goal-setting, and the pursuit of happiness over monetary gain, Gary advises flexibility and self-awareness. He highlights the importance of being a practitioner in one's field and prioritizing meaningful interactions over rigid plans.

Gary Vaynerchuk [33:21]: "Knowing where you're going is a good idea. But the ability to adjust and not be rigid is equally important."

He also touches on the significance of making his parents proud and the lasting impact of authentic leadership.

Conclusion

Episode E134 of "In Search Of Excellence" offers an in-depth exploration of Gary Vaynerchuk's entrepreneurial mindset and strategic acumen. From early investments in tech giants to pioneering live shopping trends and fostering a culture of exceptional customer service, Gary's experiences provide a roadmap for achieving excellence. His emphasis on work ethic, continuous preparation, and balancing passion with practicality offers invaluable lessons for listeners aspiring to excel in their professional and personal lives.

Notable Quotes with Timestamps

Investing in Twitter:

Gary Vaynerchuk [00:31]: "And he left $2 billion on the table."
Live Shopping Insight:

Gary Vaynerchuk [01:45]: "Live shopping is going to get too big... I have the best hand."
Customer Service Commitment:

Gary Vaynerchuk [05:08]: "I decide to make a huge to-do about this case of Behringer White Zinfandel... because we have the best customer service in the game."
Founding VaynerMedia:

Gary Vaynerchuk [14:17]: "VaynerMedia is something I'm very proud of... it's been an incredible incubator of talent."
Angel Investing Philosophy:

Gary Vaynerchuk [22:03]: "Now I look for the jockey and the horse, the operator and the idea."
Content Marketing Strategy:

Gary Vaynerchuk [27:10]: "The best social media organic post is a more important form of advertising than any television commercial."
Work Ethic Importance:

Gary Vaynerchuk [28:22]: "I believe people can do the same professionally."
Preparation and Flexibility:

Gary Vaynerchuk [33:21]: "Knowing where you're going is a good idea. But the ability to adjust and not be rigid is equally important."

This comprehensive summary encapsulates the essence of Gary Vaynerchuk's discussion on "In Search Of Excellence," providing listeners with actionable insights and inspirational narratives to emulate in their pursuit of excellence.

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Transcript

Gary Vaynerchuk (0:00)

One of the first videos I ever made was called Facebook. Should be worried about Twitter because Twitter just come out. I was again fascinated by it. That video went viral. Blaine Cook was the first cto. I met him for a taco at south by and he told me he was quitting and selling every share and did I want any. First, I tried to talk him out of it. I said, I think you're making a huge mistake. Second, I could see he was making an emotional decision. A couple weeks later on emails like, do you want to buy it? I'm done. I'm like playing. He's like, I'm done. And so me, Fred Wilson and Kevin Rose bought up all his shares. That was my first investment.

Unknown Interviewer (0:31)

And he left 700 million, $2 billion on the table.

Gary Vaynerchuk (0:34)

That's right. Just staggering. Several months later, my video went viral. Facebook. Dave Morin asked me to speak at Facebook. Zucks was there. We had dinner that night. We hit it off. We started to get to know each other. And his sister Randy called me. Mark wanted me to call. Our parents are looking to sell some shares. They're going to buy a nice home near us in California. Would you like to buy some Facebook equity? And she literally took 80% of my savings invested in Facebook.

Unknown Interviewer (1:00)

You're listening to part two of my incredible interview with Gary Vee. If you haven't yet listened to part one, be sure to check that one out first. Now, without further ado, here's part two of my awesome conversation with Gary. You took a company from 3 million to $60 million in a short amount of time. You saw things that people didn't see at the time. You bought keywords, adwords, wine was 5 cents and then after nine months went to 10 cents. So what did you see that nobody else saw as really a first mover advantage, but I think is so important sometimes in building businesses.

Gary Vaynerchuk (1:34)

It's what I see right now with live shopping on social. I'm going to assume that I'm going to just look around the room, that people here know that TikTok shop exists, that people sell things on TikTok.

Unknown Interviewer (1:45)

Huge.

Gary Vaynerchuk (1:45)

I'm going to assume that people here know that. Or this might be smaller, but you might know what not is live shopping. I'm going to assume that people in this circle know that China's been selling stuff on live social for the last seven years. At scale, I'm going to assume that people are listening and watching. Might have saw the viral video of that woman with the handbags who does a million dollars just by doing This, I know that all to be true. I also know that almost every single person in this circle right now is underestimating it. I know that 99.9% of the people who are watching this right now don't understand it the way I do. I understand it for what it is, which is it's going to be massive. Massive. That if you ask me right now, out of all the optionality in the world of how to make money in the next five years in America, that live shopping is at the tippy top of my list. That's what I saw with websites, email and Google adwords. I don't think I was the only person that saw it. I just think what I'm very good at is I view these trends like poker and I view live shopping on whatnot and fanatics. Live and TikTok shop and Meadow will have to do it because it's going to get too big. I view it like having the nuts in poker. I feel like I've got the best. Like I know it's the best hand. And so if you know you have the best hand, educate me here at Poker Players, you go all in because you've won. Sure, they may fold, but you go all in. I know that that's what I do for a living. What I'm good at is knowing what humans are going to do. And I know when it's the biggest hand, the best hand. And so the reason I was able to build my daddy's liquor store was having a website was better than having a catalog, right? I wanted to compete with Sherry Leman's, Zackies Morels, Sam's Wine club in Chicago, K and L in California. I wanted to have the specs in Texas. I wanted to have the best wine store in the country. What were those stores doing when I was in high school and college? They were buying full page ads in the Wall Street Journal and the New York Times Wednesday dining in section and they were sending catalogs in the mail. I outflanked them by having a website and having a new mail, an email newsletter. So my email newsletter in 1998 when 94 Dominus came out and insignia, I would email everybody and they would buy for me. They would get the catalog from Sherry Lehman's four weeks later because catalogs are slow. Email is fast. Catalogs are expensive to make and ship. Email was free. So even though I had no money, I outsmarted them by knowing where the attention was because Wall street had moved to email. But not everybody caught up. I believe social media is now in my brain. 20% of all social media content is live shopping. It's not yet, but it will be. And so I'm going to move fast during this era on it. That's what I did with email, with having a website at all. And then finally the big final atomic bomb outflanking Everybody on Google AdWords.

Gary Vaynerchuk (5:08)

This is such a. So anybody who owns a business, if you're listening right now and you want to make a point a culture, do something in action. Don't make a fucking poster and put it in the hallway. Don't tell a story that happened in the past. You and I have enough war stories where we can tell the kids. Do an action. So I was building this store. We're now on fire at this point. This is later. This is like 2002 or three. We built a new store. I grew up in a smaller store. Then we built a big store as I was growing the revenue. I am the man on the floor and this is the holidays. When I tell you from 18 to 34 years old, my December and I mean all the first 24 days of December outside of when I was in college. So but even then I came home way early because I was barely going to class. I would spend from 7am to 10pm on the floor of my dad's liquor store. It was prime time, especially pre Internet. You know, we are in the midst of one of the busiest days in the history of the store and now we're doing Internet business and we get a phone call in the order department. I'm running upstairs, downstairs. I'm keeping an eye on the Internet and the store and I'm fucking a maniac. And we get this call from the son of this elderly woman, wasn't even her that her case got misship. And this was like December 23rd or 2nd or 1st, I don't remember. But put it this way, she lived in Jersey and that's one day delivery. And I knew that if we put it back in the mail she wouldn't have gotten it for Christmas. And he made a big to do that she needed it for Christmas. I remember to stay like yesterday. I knew that there would be a day that I wasn't going to be at that store. I knew that I was going to have to build my own life at some point because I knew my dad viewed it like an immigrant, which is, oh, this is your business. But it's really not. Like I can't buy a home because I have no equity. Like I couldn't, you know, like I would inherit it when he would pass. Well, I'm fucking going to be 50 in 15 months. And my dad's still working every day. So you can imagine I was smart enough, thank God, at 22, to be like, I got to do my own thing. But I remember I needed a to do things because once I was gone, I wanted them to know how it was built. I knew then. So even though I'm on the floor and generating 10 to $20,000 an hour, just me personally on someone like you that had high net worth, that would come in and be like, I need three cases of high end wine for the holidays. I was that guy. I decide to make a huge to do about this case of Behringer White Zinfidel. It's snowing, like the weather's bad. And I decide to grab a case from the basement. And I tell my inner team, just like this, in a circle, I'm like, I'm gonna go deliver this because we have the best customer service in the game. And they are stunned. I don't go to pee for 15 hours during the day. That's how busy it is and how committed I am. And now I'm gonna drive to Bergen County. Isn't that an hour? And that's without snow. The. The are you doing, Gary? And I said, this is. I just remember that this was my moment to make a point. So I did it. I drove. I enjoyed it. I listened to sports radio on the way got back, everybody was stunned. Everybody was sweating. Brandon was like, you missed Mr. Thompson and Mr. Smith. And like, all this money was lost, but it became a story. To this day, that story is being told to employees at our store about customer service. I might have lost $20,000 in sales that hour, but I've helped my dad make millions since. And I think more companies should understand that actions carry enormous weight. And I believe that every leader that's listening right now should think about what they care about most and instilling in their company and then should go out of their way for the most hyperbolized executions of those things so that it becomes lore. I mean, look at this. I literally did that action. And here I am, 20 plus years later, having the luxury to tell that story on an important platform like this. Think about that. This is the Meta of the thesis.

Gary Vaynerchuk (15:50)

So that whole Silicon Valley Europe for me started with. So now I'm right about email, I'm right about the website, I'm right about Google, AdWords and 05. And here comes YouTube and I. And that. And I see, see that? And I'm like, fuck, I'm going to build my dad's story with this. So I've used the tool of web, I've used the tool of search and email, and here comes video online and I start using the tool. I start Wine Library TV on February 21, 2006, less than a year after YouTube comes out. And I want to take a moment right now and give a huge shout out to Eric Kastner. Eric Kastner was my lead developer. One of the most progressive things I've done in my life was the day I started working in my dad's store full time. May of 98. I told him from the day I started, I will take nothing in my salary, but we need to hire a computer guy. That's what I called developers back then. We need to hire a computer guy. And by 2000 or 2001, I was able to finally get to a place where I was able to hire Eric Kastner and then later John Casamatis, who's still our cto. And we had. We're a fucking liquor store in New Jersey and I have literal developers full time on my staff. It was so progressive. It'd be like if I hired astronauts right now. Like, it just made no sense. Um, anyway, I want to give a shout out to Eric Kastner, because without Eric Kastner, a lot of this does not happen. He was the one that sat closer than you and I are sitting right now at my desk and was like, read TechCrunch, read MetaFilter, read Wide Web, read. You know, dig. He was the one that showed me Web 2.0. And during that journey, he showed me YouTube because I asked him two years earlier if I could do videos on the site. And he said, no, too expensive to host now. We found this, were hosting it. So Now I'm doing YouTube. I explode. This is where my career really takes a turn. The wine show explodes. And then I'm now really starting to get into this tech stuff. And how do I use it to build the wine store. But it's still wine store, wine store, wine store. And then Google buys YouTube. And one point, you. You remember this, that number. I don't think the kids can now. Everything's inflation. You remember that number?

Gary Vaynerchuk (18:04)

I'm saying it right now because I want you guys to hear and be affected by it. It'd be as if you woke up tomorrow and TikTok was forced to sell and sold for a trillion. It's like you couldn't. We didn't see numbers like that. Yeah, everything was big. Numbers were hundreds of millions. I mean, Flickr sold for 40 million to Yahoo. And that seemed like a drilling. Flickr was the precursor to Instagram. Anyway, I'm just like, holy shit. And now I'm a little bit older and I'm reading more business magazines, not just wine. And I read a Wall Street Journal article about the sale because I was fascinated. I felt different this time. I was like, fuck, man. I feel like, I know. I feel like my talents are not being maximized. I'm using these things to build my dad's business. There's gotta be a way. I just felt different. I was just reading everything about it. And one article specifically references Ron Conway and it says angel investor. I'd never heard the term in my life. Angel investor Ron Conway made a gadrillion dollars. I don't remember how much he put in or what he got, but it was staggering. It was like for his $100,000 investment, made $4 million or I don't know, it might even be. It was just staggering. I don't remember the details. I just remember immediately going from print because it was I think the journal to computer and Googling, not Ron Conway Googling the term angel investor. Googling it ironically. Very, very apropos. And I'm like, huh? And I literally again said to myself, I'm going to be an angel investor. I'm going to build up some savings. I had some savings at that point. And one of the first videos I ever made that wasn't a wine video was called Facebook should be worried about Twitter because Twitter just come out. I was again fascinated by it. And I promised myself after the Ron Conway article that the next time I felt it that I would invest. And the next time I felt it was Twitter and that video went viral. Blaine Cook was the first CTO of Twitter. Developer, developer. Thank you. And I met him at south by because now I'm going to these conferences and he Twitter. I don't know if you were you in the mix? You remember this?

Gary Vaynerchuk (30:48)

It's my entire life, so my favorite thing and Sid just stepped out, but Dustin's here so I'm going to look at him. Dustin actually probably knows this better than Sid. The thing that baffles all my top executives when they started my company is I go into meetings cold and dominate them. They think I do no prep, they make me huge decks. And because the way we do our decks, they can see I didn't open it. I walk into the meeting, brand new client and they are baffled. It's one of the best compliments I get. It's so flattering, they are stunned. It is by far the number one chatter conversation of VPs and above when they first joined the company, asking all the other OGs, how the fuck did that just happen? It's because I only am prepared. It's the only thing I do. The reason I can walk into Nike or Smart Water or a T shirt brand or Elite or Lexus or any brand and crush a meeting is because most businesses are not that complicated. I can promise you that what Smart Water wants is to sell more Smart Water. And if they're meeting with me, I'm not talking about supply chain, we're not talking about other things, we're talking about demand creation. So I think preparation is the only thing. The reason I do such narrow things is there the things that I'm preparing on at all times. The reason I have veefriends and wine Library and winetext.com and GaryVee is I have to actively work on the craft of marketing and demand creation to feel like I have any ability to talk to anyone about it. I'm a full practitioner of the moment. I can speak about live social shopping right now with the expertise I get because I sold $130,000 worth of clothes on a live stream a week ago. So I think you're onto something very powerful. I would argue that the bad version of it is school and the good version of it is sports. I'm always prepared because I never talk about anything or act on anything or involved in anything that I don't actually do. I think some people study, but they're not about it. And that's where the vulnerability, even with prep work, comes in because when people start poking and prodding, you start going to 301 instead of 101 level preparation. So I think the ultimate preparation is to actually be a practitioner of. That's why I love entrepreneurs that are investors. They lift it.