Making It with Jon Davids: Episode 197 - "We Sold to Salesforce.com for $800M and Here's What I Learned" Featuring Mike Lazerow

In Episode 197 of "Making It with Jon Davids," host Jon Davids engages in an in-depth conversation with Mike Lazerow, a serial entrepreneur renowned for founding Buddy Media, which he successfully sold to Salesforce.com for $800 million. Their discussion traverses Mike's entrepreneurial journey, personal challenges, strategic business decisions, and insightful perspectives on the evolving landscape of technology and venture capital.

1. Introduction: Setting the Stage

Jon Davids kicks off the episode by introducing Mike Lazerow as a legend in the tech and entrepreneurial space. Mike's impressive resume includes founding University Wire (uWire) and Golf.com before his notable venture, Buddy Media. Additionally, Mike recently co-authored the bestselling book "Shoveling a Love Story" with his wife Cass.

John Davids [00:00]: "Join entrepreneur and investor Jon Davids as he deconstructs success with the creators, innovators, and disruptors who are making it happen."

2. Early Ventures: University Wire and Golf.com

Mike recounts his initial foray into entrepreneurship with University Wire, a service aimed at college newspapers. At just 19 years old, Mike leveraged his journalism background from Northwestern University to create a platform that aggregated student content from 700 campus newspapers, exchanging it for AP and Reuters content.

Mike Lazerow [01:28]: "UWire was a new service for college newspapers at the time. I was working at the Daily Northwestern...we grew that at Northwestern, merged it with a company called Student Advantage and took that public as part of the pre.com crash."

Despite early success, Mike's journey was not without setbacks. The dot-com crash led to the downfall of University Wire, teaching him invaluable lessons about market volatility and business sustainability.

Transitioning to Golf.com, Mike acquired the domain from NBC in a court auction during the late '90s. The platform offered golf tour coverage and unofficial handicap tracking, capitalizing on the burgeoning popularity of golf star Tiger Woods. This venture thrived, culminating in the sale of Golf.com to Time Warner for $25 million.

Mike Lazerow [11:08]: "We grew that and sold it for $25 million to Time Warner, which was a media company that used to exist, which is hard to believe what's happened there."

3. Overcoming Personal Challenges

Mike's entrepreneurial spirit was profoundly influenced by his personal battles with health. At 18 years old, he faced two open-heart surgeries due to a burst aortic valve, an experience that reshaped his outlook on life and business.

Mike Lazerow [04:12]: "It was a really important moment because I shouldn't have lived, to be honest... I keeps going back to just this idea which again and again in my life, which is like, what's the worst thing that's going to happen if I do this thing?"

This near-death experience instilled in Mike a fearless approach to entrepreneurship, allowing him to prioritize action over fear of failure.

4. Buddy Media: Building a Social Media Powerhouse

The conversation shifts to Buddy Media, Mike's third major venture. Founded during the early days of social media, Buddy Media positioned itself as a leading platform for managing social media marketing, partnering closely with Facebook.

Mike Lazerow [15:33]: "We had nine out of the top 10 global marketers using our software...We were the infrastructure at a time where Mark Zuckerberg wasn't really focused on making money. He was focused on growth."

Buddy Media's strategic alignment with Facebook's growth-focused approach enabled them to handle significant ad traffic and optimize marketing efforts for major clients like P&G, Unilever, and American Express.

5. Acquisition by Salesforce

Mike details the acquisition of Buddy Media by Salesforce.com. Despite receiving a more lucrative offer from Google, Mike chose Salesforce for its visionary leadership under Marc Benioff and the alignment of Buddy Media's capabilities with Salesforce's expanding suite of cloud products.

Mike Lazerow [25:52]: "We felt the energy because we had inbound interest and calls from not only Salesforce, but Google...We went with Salesforce."

The deal, valued at $800 million, was swiftly executed following Mike's meeting with Marc Benioff, highlighting Salesforce's strategic intent to integrate social media marketing into their existing cloud services.

Mike Lazerow [27:54]: "We just worked out the deal there. He's like, we just worked out the deal there."

6. Life After Acquisition: Burnout and Rediscovery

Post-acquisition, Mike and Cass faced the challenges of assimilating Buddy Media into Salesforce's expansive operations. The rapid scaling led to personal and professional strains, including burnout and diminished work-life balance.

Mike Lazerow [34:46]: "We wrote about this in the book...we were just tired. Having said that, it was awesome. Like, we wouldn't trade it."

Eventually, Mike recognized the need to prioritize his health and personal life, leading to a period of reflection and rediscovery. This hiatus allowed him to explore new passions, such as painting, and reconsider his future endeavors.

7. Venture Capital and Current Endeavors

Transitioning from entrepreneurship to venture capital, Mike co-founded Velvet C Ventures, a firm managing $400 million in assets. His investment philosophy emphasizes timing, productivity, and impact over mere financial gain.

Mike Lazerow [30:36]: "Timing is it. If you get the timing right, in a good market, you could be the number five players...the only thing that correlates to success is timing."

Mike advocates for supporting businesses that offer tangible productivity gains through AI and other technologies, focusing on augmented intelligence to enhance workflows and operational efficiency.

8. The Future of AI and Entrepreneurship

Mike shares his optimistic outlook on the integration of AI in businesses, predicting a surge in vertical AI applications that solve specific problems and drive productivity. He encourages entrepreneurs to identify real-world challenges that AI can address, emphasizing the transformative potential of these technologies beyond Silicon Valley giants.

Mike Lazerow [47:03]: "The biggest use of AI is what I'm calling like augmented intelligence...the future is productivity gains drive value."

He envisions a landscape where even small businesses can leverage AI to optimize operations, thereby creating substantial value and paving the way for scalable, impactful ventures.

9. Closing Thoughts: The Power of Networking and Relationships

Throughout the episode, Mike underscores the significance of networking and building meaningful relationships. Reflecting on his associations with figures like Gary Vaynerchuk and Seth Meyers, he highlights how timing and strategic connections have been pivotal to his success.

Mike Lazerow [32:48]: "If you build relationships over a long period of time, regardless of who people are, you will have a very meaningful life and have a step up."

Mike's journey encapsulates the essence of resilience, strategic foresight, and the enduring value of personal connections in navigating the dynamic world of entrepreneurship.

Notable Quotes Summary

• Mike Lazerow [04:12]: "What's the worst thing that's going to happen if I do this thing?"

• Mike Lazerow [15:33]: "We were the infrastructure at a time where Mark Zuckerberg wasn't really focused on making money. He was focused on growth."

• Mike Lazerow [25:52]: "We went with Salesforce."

• Mike Lazerow [34:46]: "We wouldn't trade it."

• Mike Lazerow [30:36]: "If you get the timing right, in a good market, you could be the number five players...the only thing that correlates to success is timing."

• Mike Lazerow [47:03]: "The biggest use of AI is what I'm calling like augmented intelligence...the future is productivity gains drive value."

Conclusion

Episode 197 offers listeners a comprehensive glimpse into Mike Lazerow's entrepreneurial saga, marked by early ventures, strategic acquisitions, personal trials, and a forward-thinking approach to technology and investment. Mike's insights serve as valuable lessons for aspiring entrepreneurs and investors navigating the complexities of building and scaling successful businesses in an ever-evolving digital landscape.

For more insights and strategies on building impactful businesses and leveraging social media for growth, subscribe to "Making It with Jon Davids" and leave a review to support the show.