Podcast Summary: "My First Million" Episode - 3 Killer Businesses Hidden in Plain Sight

Host: Sam Parr
Co-Host: Shaan Puri
Release Date: November 4, 2024
Podcast Title: My First Million
Host/Author: HubSpot Media

In this compelling episode of My First Million, hosts Sam Parr and Shaan Puri delve into the innovative world of businesses that thrive by monetizing products or services that are ostensibly free. Titled "3 Killer Businesses Hidden in Plain Sight," the episode explores how entrepreneurs leverage existing free resources to build lucrative ventures, uncovering opportunities that often go unnoticed.

1. Oasis: Monetizing Water Quality Data

Sam Parr introduces the first hidden business: Oasis, an app that provides comprehensive water quality reports. Despite water quality data being publicly accessible, Oasis aggregates and presents this information in a user-friendly format, offering both city-wide assessments and specific product analyses, such as bottled water contaminants.

Sam Parr [02:05]: "Oasis is an app that checks the water quality. It'll tell you if your city's water is clean... It aggregates free data that already exists."

The founder, Cormac from Minnesota, identified a gap when he noticed discrepancies in water quality between his hometown and Los Angeles. Frustrated by the presence of contaminants like PFAS in both tap and bottled water, he developed Oasis to simplify the process of accessing and understanding water quality reports. Initially generating around $10,000 monthly, Oasis has scaled to approximately $40,000 per month through subscription models and affiliate schemes.

Shaan Puri [03:37]: "If you want more, use my app. This simple TikTok drives a million views and converts them into app downloads."

Shaan highlights the effectiveness of leveraging social media platforms like TikTok to generate substantial traffic, emphasizing that replicable marketing strategies can consistently drive growth for such businesses.

2. Selling Labor Law Posters: A Multimillion-Dollar Model

The second business model discussed revolves around labor law posters. Though freely available through state websites, companies like Oasis's successors profit by simplifying the acquisition process for businesses. They send out intimidating letters prompting compliance, offering to mail the required posters for a fee.

Sam Parr [09:43]: "You have to buy them or do you. These labor law posters are actually free... Companies make a couple million dollars a year on super high margins by selling what's essentially free content."

The convenience factor—combining free data with ease of access—renders these companies highly profitable. By streamlining the procurement process and adding a layer of urgency and compliance necessity, they ensure steady revenue streams despite the low cost of the product.

3. Barcodes: The Silent Revenue Engine of Retail

Barcodes, seemingly mundane, constitute the third hidden business with massive revenue implications. Sam narrates the history of barcode invention by Norman Woodland and Bernard Silver, initially unsuccessfully applied to train containers until technological advancements like lasers found their optimal use in retail.

Sam Parr [14:44]: "A barcode is used every time you buy a product. It's a product used over 6 billion times a day."

Barcodes revolutionized inventory management and checkout processes, enabling retailers to scale operations efficiently. The nonprofit GS1 monopolizes barcode distribution, generating substantial revenue by charging manufacturers for unique barcode assignments. Sam criticizes GS1's exorbitant fees and the organization's immense asset accumulation, highlighting how a simple set of lines became an indispensable retail tool.

Shaan Puri [07:05]: "I actually predict this could be a significantly larger product than I think it could be worth many tens of millions of dollars."

Shifting the Business Mindset: Recognizing Ubiquitous Opportunities

Beyond detailing specific businesses, the hosts emphasize a fundamental shift in entrepreneurial mindset. Success, they argue, lies in recognizing and capitalizing on ubiquitous opportunities rather than waiting for groundbreaking ideas.

Sam Parr [10:23]: "You have to figure out one of these. That seems easy, right? It's like picking one Skittle from a jar."

This perspective encourages listeners to observe everyday objects and services as potential business opportunities, fostering a proactive approach to identifying market gaps.

Marketing Tactics and the Seven Human Hijacks

A significant portion of the discussion revolves around Craig Clements’ concept of the "Seven Human Hijacks", advanced marketing tactics that influence consumer behavior and societal norms. Examples include:

• Spectacle Marketing: Creating awe-inspiring events to shift perceptions, as seen with Otis Elevator’s demonstration to instill trust in elevators.

  Sam Parr [34:25]: "He creates an exhibit where he's got an elevator suspended in the air... 'All safe, gentlemen.' Elevator sales take off from there."

• Influencer Utilization: Leveraging influential figures to redefine product associations, exemplified by De Beers' diamond campaigns.

  Shaan Puri [42:09]: "He called it the 'Torches of Freedom,' making smoking a symbol of liberation for women."

These strategies demonstrate how nuanced marketing can embed products deeply into cultural practices and societal expectations.

Cultural Shifts Through Marketing

The hosts provide historical instances where marketing campaigns have instigated substantial cultural changes:

• Casual Friday: Initiated by Levi’s to promote khaki pants, altering workplace dress codes and spurring apparel sales.

  Sam Parr [26:05]: "This is the same idea as... making cleaning products a springtime necessity."

• Breakfast Importance: Kellogg’s campaign that established breakfast as "the most important meal of the day."

• Baby Showers and Wedding Registries: Standardized by companies like Johnson & Johnson and Macy’s to drive sales and create social norms.

These examples underline the profound impact that strategic marketing can have on daily life and consumer habits.

Personal Anecdotes and Reflections

Towards the episode's conclusion, Sam and Shaan share personal stories highlighting their passion for historical institutions and the inspiration drawn from understanding how foundational elements shape modern businesses.

Shaan Puri [49:35]: "It inspired me, but there was a little bit of a crisis of, like, oh, man. Like, it's important to do something like that can impact people for centuries."

These reflections serve to inspire listeners to think beyond immediate gains and consider the long-term cultural and societal implications of their entrepreneurial endeavors.

Conclusion

"3 Killer Businesses Hidden in Plain Sight" masterfully illustrates how observable, everyday products and services can be transformed into highly profitable businesses through innovative thinking and strategic marketing. By dissecting examples like Oasis, labor law poster sales, and barcodes, Sam Parr and Shaan Puri encourage entrepreneurs to adopt a mindset that recognizes opportunities in the mundane, leveraging existing free resources to build substantial revenue streams.

The episode also underscores the pivotal role of marketing in shaping consumer behavior and cultural norms, offering valuable insights into how businesses can influence society at large. For aspiring entrepreneurs and business enthusiasts, this episode serves as a compelling reminder that sometimes, the most lucrative ventures are hiding right in front of our eyes.

Sam Parr [30:42]: "There's a way to get that off. And then you'll have that Hollywood pearl smile."

Notable Quotes:

• Sam Parr [02:05]: "Oasis is an app that checks the water quality. It'll tell you if your city's water is clean... It aggregates free data that already exists."

• Shaan Puri [07:05]: "I actually predict this could be a significantly larger product than I think it could be worth many tens of millions of dollars."

• Sam Parr [10:23]: "You have to figure out one of these. That seems easy, right? It's like picking one Skittle from a jar."

• Sam Parr [34:25]: "He creates an exhibit where he's got an elevator suspended in the air... 'All safe, gentlemen.' Elevator sales take off from there."

• Shaan Puri [42:09]: "He called it the 'Torches of Freedom,' making smoking a symbol of liberation for women."

This episode not only sheds light on unconventional yet highly profitable business models but also provides a blueprint for recognizing and capitalizing on hidden opportunities in the market. Whether it's leveraging free data, simplifying access to essential information, or understanding the power of marketing to shift cultural paradigms, My First Million equips its listeners with the insights needed to uncover and exploit the hidden gems of the business world.