Airbnb’s Role in America’s Housing Crisis, How To Be a Successful Entrepreneur, and Spending Money in Your Twenties

Summary

The Prof G Pod with Scott Galloway
Episode: Airbnb’s Role in America’s Housing Crisis, How To Be a Successful Entrepreneur, and Spending Money in Your Twenties
Release Date: December 18, 2024

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1. Airbnb’s Role in America’s Housing Crisis

Discussion Overview:
Scott Galloway delves into the impact of the home-sharing economy, particularly platforms like Airbnb and VRBO, on the United States' housing market. He examines whether these platforms exacerbate the housing shortage and contribute to rising rental prices or if their effects are more nuanced.

Key Points:

• Market Growth and Influence:

  • In 2023, the U.S. short-term rental market generated $64 billion in revenue, a substantial increase from $39 billion in 2019.
  • There are over 2.4 million vacation rental listings in the U.S., managed by more than 785,000 hosts.

• Housing Shortage Context:

  • The U.S. faces an estimated housing shortage of at least 2 million homes.
  • The debate among economists centers on whether banning short-term rentals like Airbnb can effectively address housing affordability issues.

• Economic Impact:

  • A 2019 Harvard Business Review study indicated that a 1% increase in Airbnb listings resulted in a minimal 0.01% rise in rental prices.
  • Airbnb argues that short-term rentals inject money into cities through rental fees and visitor spending, benefiting neighborhoods not typically serviced by tourism.

• Contrasting Perspectives:

  • Galloway acknowledges Airbnb's economic contributions but emphasizes the transfer of wealth from local residents to tourists.
  • He highlights that converting long-term rentals to short-term leases reduces housing availability for residents, driving up rents and property values.

• Regulatory Considerations:

  • Galloway advocates for taxing short-term rentals and ensuring that revenue is reinvested in expanding the housing stock.
  • He identifies the primary issue as a lack of housing supply, exacerbated by restrictive local zoning and permitting processes controlled by current homeowners.

Notable Quotes:

• “If people start taking stock that would ordinarily be used for long term rentals and converting it to short term rentals, then local residents see their rent go up.” [03:21]
• “The real issue here is a supply problem. We need the government to weigh in with tax subsidies and economic incentives such that builders rev up those engines.” [03:21]

Conclusion:
While Airbnb and similar platforms contribute economically to cities, they also play a role in exacerbating the housing shortage by diverting properties from long-term rentals to short-term stays. Addressing this issue requires a balanced approach of taxation, regulation, and incentivizing the expansion of the housing supply to mitigate the adverse effects on housing affordability.

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2. How To Be a Successful Entrepreneur

Discussion Overview:
Scott Galloway provides insights and advice for aspiring entrepreneurs, drawing from his extensive experience in starting both successful and failed businesses. He emphasizes the importance of partnerships, financial prudence, and strategic timing in building a thriving enterprise.

Key Points:

• Importance of Partnerships:

  • Galloway underscores the value of starting businesses with partners who complement your skill set.
  • “I think it's more fun to build something with someone else. And when you're young, you want to round out your skills with someone else who has the skills you don't have.” [06:45]

• Talent Acquisition and Generosity:

  • Identifying and attracting talented individuals is crucial. Offering equity stakes can motivate and retain key players.
  • Example: Galloway shares his experience of offering a 10% stake to a talented employee, which later proved highly beneficial when the company was sold for $158 million.

• Revenue Focus Over Expenses:

  • Prioritizing revenue generation is vital, especially in the early stages. Avoid unnecessary expenditures that do not contribute directly to income.
  • “A business is about revenues. Now, I've always been in services business. So don't take a lot of capital.” [10:10]

• Economic Timing:

  • The economic climate during which a business is launched significantly affects its likelihood of success. Starting during a recession can be advantageous due to lower costs and available talent.
  • “The companies I started at the tail end of a boom, 99, 2007, almost always failed. Everything's expensive.” [12:30]

• Operational Discipline:

  • Maintain strict control over spending and focus on essential business operations. Avoid the temptation to overspend on non-critical areas like office spaces or lavish advertising.
  • “Revenues make a business, not expenses. Don’t fall under the illusion that just because you can raise a lot of money or cheap capital that spending it makes a business.” [11:15]

• Team Management and Ruthlessness:

  • Early team members must add significant value. It's essential to be decisive and sometimes ruthless in ensuring that only those who contribute meaningfully remain with the company.
  • “You have to be ruthless when it comes to your first 10, 20, 30 employees. Everybody has to be adding value.” [13:50]

Notable Quotes:

• “Greatness is in the agency of others.” [09:05]
• “Good people make successful businesses; it wasn’t necessarily the idea that determined success.” [10:50]

Conclusion:
Successful entrepreneurship hinges on building strong partnerships, focusing on revenue generation, strategic financial management, and assembling a competent team. Additionally, launching a business during favorable economic conditions can significantly enhance its prospects. Aspiring entrepreneurs should prioritize these elements to navigate early pitfalls and steer their ventures toward long-term success.

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3. Spending Money in Your Twenties

Discussion Overview:
Scott Galloway addresses financial discipline in one's twenties, particularly for individuals with substantial inheritances or savings. He advises striking a balance between frugality and enjoying life's experiences to achieve financial independence without compromising personal fulfillment.

Key Points:

• Personal Context and Financial Standing:

  • Jennifer Sanchez, a 23-year-old student, shares her financial situation, including an inheritance of €1.5 million in real estate, €100,000 in investments, and €20,000 in cash.
  • Despite considerable financial resources, she maintains extreme frugality to achieve financial independence by her mid-30s.

• Balancing Discipline and Enjoyment:

  • Galloway recommends loosening financial constraints to enjoy life more, especially given the robust financial cushion.
  • “I would encourage you to loosen up the spigot a little bit and have some fun... take some really cool trips a year.” [17:37]

• Investment and Wealth Growth:

  • Emphasizes the potential for real estate investments to grow over time, reinforcing financial security.
  • Suggests that with properties appreciating at 4-6% annually, financial independence is attainable without continuous extreme saving.

• Quality of Life and Relationships:

  • Encourages spending not just on personal enjoyment but also on enriching relationships, such as taking family members on trips.
  • “Take your mom on a trip. Let her live a little bit.” [17:37]

• Psychological Well-being:

  • Highlighting the importance of experiencing life’s pleasures to maintain mental and emotional health, preventing burnout from relentless frugality.
  • Advocates for a balanced approach that allows for both saving and spending in moderation.

Notable Quotes:

• “At the age of 23, take your mom on a cruise or something. Live a little bit.” [17:37]
• “You’ve already saved €100,000. You are so far ahead... this is the mother of all good things.” [17:37]

Conclusion:
While financial discipline is crucial for achieving independence, especially with significant resources, it's equally important to enjoy life’s experiences. Galloway advises young individuals like Jennifer to balance saving with spending on meaningful experiences and relationships. This balanced approach not only fosters personal happiness but also ensures long-term financial security without sacrificing quality of life.

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Final Thoughts

In this episode, Scott Galloway provides a comprehensive analysis of pressing economic and personal finance issues. From the systemic impacts of the sharing economy on housing to the nuanced strategies for entrepreneurial success and the importance of balancing financial discipline with personal enjoyment in one’s twenties, Prof G offers valuable insights grounded in real-world experience and data. Listeners gain a deeper understanding of how macroeconomic factors interplay with individual financial decisions and entrepreneurial endeavors.

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Notable Segments and Timestamps:

• Airbnb and Housing Crisis Discussion: [02:12 - 16:21]
• Entrepreneurship Advice: [03:21 - 16:21]
• Spending in Your Twenties: [16:21 - 20:13]

Note: Advertisements and non-content segments have been excluded to focus on the core discussions.

Transcript

[Scott Galloway]

Support for this show comes from Klaviyo. You're building a business. Klaviyo helps you grow it. Klaviyo's AI powered marketing platform puts all your customer data plus email, SMS and analytics in one place with Klaviyo. Tinned Fish Phenom Fish Wife delivers real time personalized experiences that keeps their customers hooked. They've grown 70 times revenue in just four years with Klaviyo. Now that's scale. Visit K L-A-V-I-Y-O.com to learn how brands like Fishwife build smarter digital relationships with Klaviyo. Support for this show comes from Amazon Prime. However you plan to make the most of the holiday season, you can do it with Amazon Prime. Whether it's last minute ingredients and stocking stuffers or a themed puzzle to solve with the family, get fast free delivery on Holiday Essentials with Prime. And with Prime Video, you can curl up on the couch, warm drinks in hand and have a holiday movie marathon. Throughout it all. You can tune into classic holiday playlists on Amazon Music. Whatever you're into this holiday season, from streaming to shopping, it's on Prime. Visit Amazon.comprime to get more out of whatever you're into.

[Cameron]

Support for the show comes from Crucible Moments, a podcast from Sequoia Capital. We've all had turning points in our lives where the decisions we make end up having lasting consequences. No one knows this better than the founders of some of today's most influential companies, and Crucible Moments lets listeners in on the make or break events that defined major Companies like Dropbox, YouTube, Robinhood and more told by the founders themselves. Tune in to season two of crucible moments. Today. You can listen at cruciblemoments.com or or wherever you listen to podcasts. Welcome to the Prophecy Pods Office Hours. This is the part of the show where we answer questions about business, big tech, entrepreneurship and whatever else is on your mind. If you'd like to submit a question, please email a voice recording to officehoursofpgmedia.com Again, that's office hoursprofgmedia.com?

[Alex]

Number one hi Prof. A few weeks back you discussed the housing crisis facing this country. You discussed a number of factors, but I did not hear you mention the impact of the sharing economy such as Airbnb and vrbo. I live in Nashville, Tennessee which has seen a confluence of two events, a post pandemic or post Covid population rise from residents of high tax states such as New York and California moving to a very low tax state here in Tennessee. Additionally, we've also risen as a very popular vacation destination. Both of these have contributed to our building boom which we're seeing here. We have a number of apartments and a number of housing units being built, but many of those are built and owned for the sole purpose of being short term rentals. As a result, we have seen our housing prices soar. What impact are you seeing the home sharing economy have on the rest of the country? Is it similar to what we're seeing here in Tennessee or are we just an anomaly? Thanks so much for your show.

[Cameron]

Always appreciate really thoughtful question. So, disclosure. I'm a shareholder in Airbnb. There's just no getting around it. This is an issue. Cities across the U.S. including New York and Santa Monica are cracking down on short term rental platforms, specifically Airbnb and VRBO. So let's look at the numbers. US short term rental market in 2023 was 64 billion in revenue, up from 39 billion in 2019. Vacation rental listings in the US over 2.4 million and more than 785,000 hosts. And the estimated US housing shortage is least 2 million homes. Economists are divided on whether implementing bans on short term rentals helps solve the housing affordability crisis. A 2019 Harvard Business Review study found that a 1% increase in Airbnb listings led to just a small 0.01% rise in rental prices. Airbnb's response? Short term rentals bring money to cities through rental fees and visitor spending. They also say that most of their listings are outside typical tourist areas, supporting neighborhoods that usually don't benefit from tourism. That's a fair point. I would say there's contradictory forces here. The first is there's just no getting around it. If people start taking stock that would ordinarily be used for long term rentals and converting it to short term rentals, then local residents see their rent or their, you know, the rent on the rent go up. That makes sense. That I see as a transfer of wealth from residents to tourists who are looking to, not who don't want to stay at some Joey Baggage Donuts hotel in Midtown for 600 bucks a night so they can rent a cute studio or one bedroom for 300 bucks in Chelsea or Soho or Flatiron. So they benefit. It's an economic arbitrage or economic transfer from residents to tourists, if you will. Or to. From to. From long term renters to short term renters. Now to Airbnb's point, this should create economic activity if you reduce the friction of Coming to a city and getting more people spending money and more people coming to different metros, it should create economic growth. The key is, and the hotels had a good point that Airbnb should pay paying a certain amount of tax or the same tax. And then is that money being reinvested in new housing stock? The biggest problem we have in the US around housing is that we just don't have enough supply. It's obviously not a demand problem. It's that it has become so difficult. I think the primary culprit around increasing rents and unaffordability around housing is essentially we have taken housing permits out of the hands of civic officials and put it into the hands of homeowners. What do I mean by that? If you want to build, you have to get through the local architectural review board, the city planning commission, and unfortunately, these commissions are filled with current homeowners who always find reasons not to increase the housing stock. Why? Because the incentives are to limit the housing stock such that the value of the assets they already own their homes increases in value. So they will listen to someone. I bought a piece of land in Florida and we were planning on developing it, and a woman showed up to the review meeting and Florida is actually quite developer friendly and said, I want a study done, or I don't want them to develop over there because I walk my dog on that piece of property. And I'm like, okay, so that's trespassing. No, I mean, they just delayed it another month because a woman liked to walk her dog on my land. We need economic incentives and tax rates. We need to basically weaponize the private sector and provide some sort of economic incentive to get them building again. I think this is really the problem. I don't think it's short term rentals. I think they add to it. But I think taxing them and putting in place some restrictions might make sense. I'm not even sure you want to put in place restrictions. I think you just. What you want to do is let their freak flag and their capitalist flag grow. Let them do a bunch of innovation around current assets. Also, there's a certain private property element here, and that is if I own my place, I should be able to do pretty much whatever the fuck I want with it. The real issue here is a supply problem. We need the government to weigh in with tax subsidies and economic incentives such that builders rev up those engines. And also we probably need some sort of regulation that makes it more difficult for civic officials that are crammed with current homeowners to weaponize the scarcity culture that we have engaged in where if I already own stocks, I'm going to create monopolies such that those stocks go up and up and up. If I already own a home, I'm going to make it harder for someone else to own a home. If I already have a degree from UCLA because I got in with a 76% admissions rate, I like that it's a 9 because that makes the value of my degree go up. We have moved from a egalitarian society investing in opportunity to a scarcity rejectionist bullshit culture that's about the Hunger Games where once I get mine, I want to make it harder for you to get yours. And housing is ground zero for that. Thanks so much for the question. Question number two. Hi, Scott, this is Cameron from Orlando, Florida. I've been doing relatively well in my career thus far and have been able to save and invest a substantial amount of money. I'm considering starting my own business within the next few years and was hoping you could help identify and give advice for avoiding some early pitfalls that young entrepreneurs tend to fall into. Thank you and love the show. Thanks so much, Cameron. Well, I have a lot of experience here because I've started a lot of companies that have failed. I've started some that have been successful. And the wonderful thing about America is you only need a couple successes and if it does really well, you're set for the rest of your life. Okay, so greatness is in the agency of others. I've typically, until the last 10 years of my life where I had the credibility and I thought the skill to start businesses on my own. I always had a partner. I started my first business and my first business was a video rental business. When I was 24, I partnered with my friend Lee Lotus. My next business was profit brand strategy. I partnered with my business school classmate Ian Chaplin. I typically started businesses with other people. So one, I think it's more fun to build something with someone else. And when you're young, you want to round out your skills with someone else who has the skills you don't have. And that's the key. Finding a partner with different skills and also being generous with each other. Nothing blows, nothing snatches defeat from the jaws of victory more than when you aren't generous and don't get along with your partner. It can just fuck up a company that has everything going for it. Whenever I see a good company flying apart at the seams, I know that the partner's not getting along. The first thing you got to do is find really talented people. Give them a piece of the business. Paint a vision for why you think it's going to be successful. Treat them well, identify the few key players in your company, your small business, and nail their feet to the ground. Say, I'm going to give you 10% of this company. My first hire. I hired students when I started L2 and my first hire, full time hire was a woman named Maureen Mullen. I paid Maureen 15 bucks an hour. She had her consulting offer rescinded. This was 2008 or 2009. I started her I think at 15 or 20 bucks an hour. She was so good. I said, look, I don't have the money to pay you a market competitive salary, but I'm going to give you 10% of the company. Fast forward seven years later, we sold for $158 million. So things worked out for her. But you want to identify a core group of people and a partner. I think early on that's everything. Two revenues make a business, not expenses. I still make this mistake when I start a business. I think, oh, I've got to rent an office space, I need to hire a bunch of people, I need to have nice furniture, I need to do some advertising. Fuck that. A business is about revenues. Now, I've always been in services business. So don't take a lot of capital. But don't fall under the illusion that just because you can raise a lot of money or cheap capital that spending it makes a business. It doesn't. Sure, there are some businesses, specifically in tech where you do need to make investments, but I'm pretty sure that every investment I made in 2021 is underwater or gone to zero. Why? There was so much capital available that a wallpapered over shitty ideas and people spent too much money. What is the number one, the number one indicator of my nine businesses success? Was it the idea? No. I don't know if one idea was better than the other. Was it the people? I had good people in almost all my businesses. It was the following. Did I start it during an economic boom or coming out of a recession? The companies I started at the tail end of a boom, 99, 2007, almost always failed. Everything's expensive. People are expensive. Mediocre people cost a ton of money. Some lame systems engineer comes into your office barefoot and demands a 30% increase in salary every two months. When I started companies, when I started profit in 1992 out of business school, we were coming out of a recession. When I started L2, it was 2009, 2010. We were coming out of the great financial recession. Those are great times to start a business. So you want to find good people. You want to make sure you don't overspend. I think you want to overserve those first few clients. I think you need to be sort of mentally and physically resilient. I think your relationship needs to be in a good place. I think you have to work exceptionally, exceptionally hard. Fair isn't a productive word. Also, I think you need a kitchen cabinet immediately to advise you around stuff. Also. Also, I hate to say this, you have to be ruthless when it comes to your first 10, 20, 30 employees. Everybody has to be adding value. You don't have time to manage. You don't have time to figure out roles. You don't have time to put people on performance plans. People have got to show up, they've got to, they've got to be in it. I mean, they got to come to play. But all of these are really, it comes down to people, good judgment and make sure you attract a lot of people around you. Greatness is in the agency of others. Good luck and thanks for the question. We have one quick break before our final question. Stay with us. Support for Propg comes from Quince. The holidays are fully upon us. Don't we know it. And if you haven't crossed off buy gifts from your to do list yet, the panic might be starting to set in. Before you fully freak out and buy everyone gift cards, take a breath, slow down and consider quints. Quints makes it easy to treat everyone in your life with some luxury quality clothing at frankly, ridiculously affordable prices. Prices Pieces like their iconic Mongolian cashmere sweaters, which start at just $50, are guaranteed crowd pleasers. They're warm, stylish and best of all, affordable. In fact, all of Quince's luxury items are priced 50 to 80% less than similar brands. Plus Quince says they only work with factories that use safe, ethical and responsible manufacturing practices. A few of our producers got to try out some quints and they love them, especially their sage green sheets and said the Turkish towels are the softest towels they've ever used. They're the softest anyways. Gift luxury this holiday season without the luxury price tag. Go to quince.com profg for 365 day returns plus free shipping on your order. That's Q-U-I-N-C-E.com propg to get free shipping and 365 day returns. Quince.com profg support for propg comes from Vanta if you're a startup founder, finding product market fit is probably your number one priority. But to land bigger customers, you also need security compliance, and obtaining your SOC2 ISO 27001 certification can take up valuable time and energy, pulling you away from building and shipping. That's where Vanta comes in. Vanta is the all in one compliance solution, helping startups like yours get audit ready and build a strong security foundation quickly and painlessly. Vanta automates the manual security tasks that slow you down, helping you streamline your audit. And the platform connects you with trusted VCSOs to build your program, auditors to get you through audits quickly, and a marketplace for essentials like pen testing. So whether you're closing your first deal or gearing up for growth, Vanta makes compliance easy. You can join over 8,000 companies, including many Y Combinator and Techstar startups who trust Vanta. If you want to simplify compliance and get $1,000 off, you can visit vanta.com profgu that's v a n-t a.com profg Support for profg comes from Grammarly. With AI becoming integrated in our work processes, the name of the game is now efficiency. It's why Grammarly delivers a consistent communication experience across all your organization's ecosystems. So roadblocks, work and unblock. Best of all, it only takes days to implement, no IT overhead required, so you can unify your team and see results right away. Grammarly unifies your team's voice across platforms by seamlessly working across more than 500,000 web and desktop apps. And when every word your team writes is clear, concise and on brand, everything gets better and faster. Grammarly reports that teams who use their technology spend 52% less time writing sales emails. We here at Profg were able to try out Grammarly and as I've said before, it helps unify or create a more consistent voice and makes us more efficient, especially writing business emails. Join 70,000 teams and 30 million people who trust Grammarly to work faster everywhere they communicate. Go to Grammarly.com enterprise to learn more Grammarly Enterprise Ready AI. Welcome back. Question number three hi Prof. G, this.

[Jennifer Sanchez]

Is Alex from Germany. First off, thank you for the amazing work you do on the podcast. I wanted to share a bit about my current situation to get your perspective. I'm 23 years old, a student, and still living at home with Mama. Next year I'll be spending six months in Hong Kong as part of my studies. Earlier this year, my father passed away unexpectedly and left me an inheritance of about 1.5 million euros, primarily in real estate. I also have 100k outside of debt, 80k in stocks and 20k in cash. Additionally, I had already saved 40k myself by living way below my means, working a lot, and saving as much as possible. Even with this financial cushion, I've become even more frugal. My goal is to achieve financial independence by my mid-30s, and that's why I'm so much focused on investing and keeping my expenses low. But lately, I've started to question if this mindset is still healthy. Given my current situation, should I loosen it up a little bit and allow myself to enjoy life more? Or is this level of discipline necessary to achieve the freedom I'm aiming for? With the new financial resources I have, I could afford to travel more or enjoy similar experiences. But I'm unsure if that aligns with my future goals. I would really appreciate your thoughts on this. Thanks again for listening and all the incredible content you share.

[Cameron]

So, first off, I'm really sorry about your dad, man. I mean, that's just. Even if you think you're ready for it, you're not. And also, I think it's great you're living with your mom. I moved back in with my mom. She and I were very close. And I would imagine that you guys need each other right now. She probably needs you more than vice versa. But I think it's really nice that you're living with her boss. You've got your shit. So together right now, you're 23, and granted, it was an inheritance, but a million and a half euros, You've already saved €100,000. You have 80 in stock and 20 in cash. You're so far ahead, both because of your good fortune and your father's and your mother's hard work and your approach that you're really blessed. This is kind of the mother of all good things, I would say, with a base. Here's the thing. I'm gonna. I'm gonna encourage you to loosen up the spigot a little bit and have some fun. Whether that's going to, I don't know, a visa with some friends or a music festival. I don't, you know, take 5, 10, maybe even 15 grand a year additional and, you know, really kind of enjoy your 20s a little bit, because you're blessed. I mean, the reality is with a million and a half euros in real estate, you're. You're not bulletproof. But if that grows at 4 or 6% a year in value from the age of 23, you're going to be wealthy. So I think that given the situation you're in, to open it up a little bit and take, like I said, another 10, 15, €20,000 and be really smart about it. But do 1, 2, 3 really cool trips a year. I would do it on on experiences. It's weird to say this. I'm usually telling people to bring their horns in in terms of spending, but I would say at the age of 23, Christ, take your mom on a trip. Take your mom on a cruise or something. You know, live a little bit, Let her live a little bit. All she wants to do probably is hang out with you. But yeah, a couple trips a year with some buddies, have some fun, really enjoy what it means to be 23 and as remarkably blessed as you are economically. Yeah, I say open it up a little, push it out a little bit. A little bit. A little bit of splash in the cash, a little bit of fling in the bling. Alex, my friend, anyways, man, again, let me finish where I'm started. I'm sorry about your dad, but you're obviously on a lot of other levels, especially economically. Really blessed. Thanks so much for the question. That's all for this episode. If you'd like to submit a question, please email a voice recording to office hourspropertymedia.com Again, that's officehoursopropertymedia.com.

[Alex]

Foreign.

[Cameron]

This episode was produced by Jennifer Sanchez and Caroline Chavrin. Drew Burrows is our Technical Director. Thank you for listening to the propg POD from the Vox Media Podcast Network. We will catch you on Saturday for no Mercy, no Malice as read by George Hahn. And please follow our Prof. G Markets pod wherever you get your pods for new episodes every Monday and Thursday.

[Scott Galloway]

Support for this show comes from Amazon Prime. However you plan to make the most of the holiday season, you can do it with Amazon Prime. Whether it's last minute ingredients and stocking stuffers or a themed puzzle to solve with the family, get fast free delivery on Holiday Essentials with Prime. And with Prime Video, you can curl up on the couch, warm drinks in hand, and have a holiday movie marathon throughout it all. You can tune into classic holiday playlists on Amazon Music. Whatever you're into this holiday season, from streaming to shopping, it's on Prime. Visit Amazon.comprime to get more out of whatever you're into.

[Cameron]

Support for this podcast comes from Anthropic. It's not always easy to harness the power and potential of AI. For all the talk around its revolutionary potential, a lot of AI systems feel like they're designed for specific tasks performed by a select few. Well, Claude by Anthropic is AI for everyone. The latest model, Claude 3.5 Sonnet, offers groundbreaking intelligence at an everyday price. Claude Sonnet can generate code, help with writing, and reason through hard problems better than any model before. You can discover how Claude can transform your [e-mail] Claude.