Podcast Summary:

Making It with Jon Davids – Episode 239
Title: How WeWork Built a $47B "Delusional" Business (Steal the Best Strategies)
Date: January 6, 2026
Host: Jon Davids

Overview

In this insightful and energetic solo episode, Jon Davids breaks down the meteoric rise—and infamous crash—of WeWork, led by the charismatic Adam Neumann. Davids pulls apart the hype, the branding, and the real lessons under the surface delusion, revealing three major strategies any entrepreneur can (ethically) swipe to build a magnetic, fast-growing business. With a mix of storytelling, practical business advice, and hilarious zingers, Davids explains how WeWork became a $47 billion “mass hallucination”—and how you can use elements of their playbook without the epic flaming nosedive.

Key Discussion Points and Insights

1. WeWork: Humble Beginnings, Simple Model

[02:32 – 03:30]

• Adam Neumann's original concept was basic "real estate arbitrage": rent office space, give it a hip makeover, and sublease desks.
• Davids quips about just how unsexy this was:

  “Honestly, the business is incredibly boring... It's called real estate arbitrage. It’s been around for hundreds of years. I literally did this in my old office. It’s not that special.” (03:08)

• What changed the game was Neumann's realization: selling the idea, not the office.

2. From Landlord to Visionary Tech CEO

[03:30 – 04:36]

• Davids outlines Neumann’s key move:

  "If he wraps that boring real estate in a layer of tech bro fairy dust, suddenly... he’s not a landlord. He’s a tech CEO. He’s Steve Jobs with a lease agreement." (03:17)

• The “We Generation,” “elevating consciousness,” and bans on meat—all branding strategies to sell a movement, not a commodity.
• Neumann and co-founder Miguel were obsessed with community and purpose:

  "The intention was, can we change the world?...We feel that all those things, the more time is passing...the bigger the difference is.” (Adam Neumann, 04:10)

• Community became the differentiator—and the product’s identity was sold as much as any office.

3. Selling Identity Over Utility

[04:36 – 08:37]

• Davids’ first big entrepreneurial lesson from WeWork:

  “Most businesses make the mistake of selling the thing... Adam decides to sell identity.” (04:40)

• WeWork became a tribe, not just office space—with customers paying double the market rate to feel like “global citizens.”

  "He talks like he is leading a spiritual revolution. He bans meat from the company expense account because WeWork is saving the planet." (05:50)

• Takeaway for listeners:

  "Stop selling the utility of what you do and start selling the identity of the person who buys it. ... People don’t buy products, they buy solutions to their problems. If your solution also helps them feel like a better version of themselves, you're playing at another level.” (07:26)

4. The “Reality Distortion Field” & Genius Positioning

[08:37 – 10:05]

• To get a $47B valuation, you have to sell a vision to investors, too.
• Adam Neumann carefully positioned WeWork as a tech platform, not a real estate business—banning the word “real estate” internally.
• He invented "Community Adjusted EBITDA" to make the numbers look better, described by Davids as:

  “Financial fan fiction... It’s like someone saying, I’m on a strict diet. As long as you don’t count the pizza, the beer, and the nachos I ate at 2am.” (09:24)

• Davids urges, take the lesson of positioning:

  “Positioning can make or break your business. And when you use it right, it can lift you to a whole new level. Adam knew.” (10:02)

• Example: Chomps (a premium meat snack) vs Slim Jim (gas station food)—same product, different positioning and price.

5. FOMO (Fear of Missing Out): The Secret Sauce in Fundraising

[11:11 – 13:34]

• WeWork’s exponential growth was bankrolled by SoftBank’s Masayoshi Son (Masa), won over in a 12-minute whirlwind office tour.
• Masa wrote a $4.4 billion check on the spot and told Neumann:

  “Get even crazier.” (Paraphrased, 13:11)

• Davids explains Adam’s play:

  “Adam used FOMO—fear of missing out—to make WeWork an irresistible investment for SoftBank. He made the deal feel scarce. He made himself the prize.” (13:34)

• Lesson for listeners:

  “You need to manufacture some type of scarcity. ...Desperation is the cheapest perfume on the shelf. You want to be magnetic. You want to be desirable.” (13:36 – 14:10)

• Davids offers a quick “FOMO formula” using airline ticket sales:
  • Show scarcity (“4 tickets left”)
  • Bucket pricing (“6 tickets left at this price”)
  • Add urgency (“Price goes up at midnight”)

6. Cautionary Ending—and the Real Legacy

[15:00 – End]

• Even as WeWork disintegrated, Adam Neumann left with hundreds of millions. Employees lost out—but the strategies can serve ambitious, ethical entrepreneurs.
• Davids underscores:

  “The strategies underneath, those are magic.” (16:30)

Notable Quotes & Memorable Moments

• On Adam Neumann’s style:

  "The guy who looks like a youth pastor who just discovered tequila." – Jon Davids (01:01)

• On selling identity:

  “Adam makes you feel like by writing a check to WeWork, you’re becoming a better person. You aren’t a tenant. You are a global citizen.” – Jon Davids (06:38)

• On ‘Financial Fan Fiction’:

  “This is my favorite part. Adam creates a financial metric for his company called Community Adjusted EBITDA. What the actual does that mean? It sounds like something you’d learn at Harvard Business School if your professor was chugging Ayahuasca.” – Jon Davids (09:05)

• On urgency and scarcity:

  “Every business needs some kind of FOMO engine. If you do it like WeWork, it could be worth a lot of money.” – Jon Davids (15:00)

Timestamps for Important Segments

| Timestamp | Topic/Quote | |-----------|-----------------------------------------------------------| | 01:00 | Adam Neumann’s big promises and ultimate downfall | | 03:08 | “Honestly, the business is incredibly boring...” | | 04:10 | Adam on community and intention | | 05:57 | The “We Generation” and identity focused branding | | 07:26 | “Stop selling the utility of what you do…” | | 09:05 | “Community Adjusted EBITDA”—the wild financial stretch | | 10:02 | “Positioning can make or break your business.” | | 13:15 | Masa’s $4.4B check—FOMO in action | | 14:10 | “Desperation is the cheapest perfume on the shelf.” | | 15:00 | Practical FOMO strategies and final lessons | | 16:30 | “The strategies underneath, those are magic.” |

Summary of Takeaway Strategies

• Sell Identity, Not Utility: Turn your mundane product/service into a movement people want to join.
• Master Positioning: Control how customers and investors view your business. Make yourself premium, not a commodity.
• Create Scarcity and FOMO: Structure offers and messaging to feel limited, urgent, and exclusive—transforming the decision-making process.

This episode combines an entertaining case study with actionable lessons for entrepreneurs, marketers, and anyone interested in branding and business growth. Davids makes it clear: don’t imitate the crash, but do steal the best strategies from the WeWork phenomenon.