← The Prof G Pod with Scott Galloway
The Prof G Pod with Scott Galloway
How the Prof G Pod Gets Made, What Does It Mean to Be Rich? and What Really Matters in Hiring
00:23:59
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- [00:02]
Scott Galloway
Support for the show comes from Charles Schwab. At Schwab, how you invest is your choice, not theirs. That's why when it comes to managing your wealth, Schwab gives you more choices. You can invest and trade on your own plus get advice and more comprehensive wealth solutions to help meet your unique needs. With award winning service, low costs and transparent advice, you can manage your wealth your way at Schwab. Visit schwab.com to learn more.
- [00:34]
General Assembly Representative
Support for the show comes from General Assembly Seems like just about every industry is trying to figure out how to.
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Podcast Producer
Fit AI into their workflows.
- [00:39]
General Assembly Representative
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- [01:30]
Podcast Producer
Skills, Real Impact Avoiding your unfinished home projects because you're not sure where to start. Thumbtack knows homes so you don't have to don't know the difference between matte paint finish and satin or what that clunking sound from your dryer is. With thumbtack, you don't have to be a home pro, you just have to hire one. You can hire top rated pros, see price estimates and read reviews all on the app. Download today welcome to Office Hours with Prof. G. This is the part of the show where we answer questions about business, big tech, entrepreneurship and whatever else is on your mind. Just a reminder, you can now catch Office Hours every Monday and Friday. That's two episodes a week, Monday and Friday. If you'd like to submit a question for next time, you can send a voice recording to office hours@propsymedia.com Again, that's officehoursopsomedia.com or post your question on the ScottGalloway subreddit and we just might feature it in our next episode. First question Our first question comes from missionalt99 on Reddit. They ask. I'd love to learn more about how you produce all the podcasts from selecting guests, scheduling pre production to post production of each episode. How is the team structured for Prof. G and how do you think about producing a high volume of content across brands? Basically when the recording session ends, what happens next? Okay, so I'll go through some of the tactics and then I'll speak to more kind of big picture issues we put out. Why don't we put out, I don't know, 12 or 14 podcasts a week. Our podcast universe is Pivot, which is with my co host Kara Swisher. Vox owns the IP there so we can't take it and go somewhere else. And then I started a portfolio podcast. There's Profg, which is this. So the adjuncts of Profg are the following prophgy Conversations, which is generally a long form interview. Prof. G Markets, which is with my co host Ed Elson. We specifically talk about the markets and stocks. Prof. G Raging Moderates, which is a political podcast hosted with Jessica Tarloff. Office Hours, which is my favorite, which is this where people just write in and we try to give them unfiltered no mercy, no malice advice or responses to their questions. And then no mercy, no malice, which is George Hahn reading over my newsletter that I put out every Friday. We get a lot of inbound inquiry to be on the show because we've aggregated a fairly large audience and we tend to hit young wealthy men who are impossible to reach because they're all avoiding commercials by being on Netflix and Spotify. So the great white rhino of the consumer economy and then the election is our audience. Our audience is the average is a 34 year old male who makes $150,000 a year. That is quite frankly a baller. That is somebody that brands want to reach because they're in their mating years and spending money on stupid shit like coffee and watches and shoes and I don't know, SaaS based software because they want to be more attractive to mates or get promoted or scale their business. We're pretty. Are we ruthless around guests? We want to find guests that are. We like famous people. Yes. But more than that, we're trying to find people that other people haven't heard of before. So I really, I love when we find an interesting young person who so Kyla Scanlon, The Economist on TikTok this I think she's like 26 reminds me of Ed. I think she's fantastic. So we bring her on regularly. Alice Han, this China analyst from Green Mantle, I think she's just a huge find. We've had her on three times now. So Aswat Demotorin, who's probably been on more than anyone else, I just think he's fascinating and he. I don't know if you know Aswath, he's a colleague at nyu, but he's the best, hands down the best teacher there, maybe one of the best teachers in the world. So I would rather find someone that people don't know than when people come on. Some famous CEO comes on, I'm like, okay, boss, you're fucking everywhere. What are you going to tell me? You haven't said everywhere in the last 48 hours. So we try to thread the needle between someone that people are interested in hearing from and someone who's not just whoring themselves out everywhere, which is hard because people don't want to come on their podcast unless they're in horror stage, if you will. A lot of effort goes into gas. Now people think that I am someone who works around the clock and produces just a ton of content on my own. The key to all of this and the key in business is a very simple statement. Greatness is in the agency of others. Prof. G is I think 14 or 16 full time people and probably six or eight contractors, video producers or video editors, podcast producers, data analysts. Katherine Dillon runs the business. Editors, fact checkers, finance people. I have a tech guy who follows me around the world and makes sure that everything sounds good and is well lit. So we have a ton of people, much less the co hosts. So these people give our stuff, scale and make it professional. So we also have to coordinate with the other pods. I'm always traveling. We try to record the same time each week and punch out a bunch of stuff. So usually I'll sit down and five hours later for Prof. G and office hours, I have a bunch of stuff that will trickle out during the week and then we throw it over the wall to our video team that slices and dices it and then they throw it over the wall to our social media team that then just snakes it through all the different channels. I work a lot less hard than people think. I'm very good at not working. I worked pretty much around the clock for, I don't know, 25 years of my life, call it 25 to 50. And I decided to kind of get off that hamster wheel and now have a team of people that does all this. So what you're listening to now, I started recording about two minutes after I sat down and two minutes after it's over, I will leave. Not because I have work after for two minutes, but I like to make everyone laugh and I don't know, I try to tell a bunch of bad jokes for a couple minutes after the show ends and then everyone else starts to work. We're even talking about having a producer here on London such that when the production teams end at midnight in the U.S. we go, you know, it's 5:00am here, someone wakes up here and can begin working. And with Propg Markets we're going to daily, so we're really going to have a lot of content, if you will. I'm thinking about launching two more podcasts. I'd like to do a Prop G China podcast. I'd like to do a Prof. G Economics podcast because we're good at this, we have an infrastructure. I find it interesting. And while I thought I was just going to have sort of some fun with this, it's turning into a real business. The total portfolio does. And I was. I'm open about money. I think it's important people know how to make money and understand it. If you want to be wealthy, you got to become financially literate and start talking about money anyway. The whole portfolio will probably do about, I don't know, 17 or 20 million dollars this year. It's a very profitable business. It's very much a winner take all business. It takes years to build things and just 10 podcasts are responsible or capture a third of all listenership, and I bet the top hundred capture two thirds. So of the 1.6 million podcasts, 600,000 put out content every week. So 5,990 9,900 are fighting over one third of the listener base. That's how difficult it is. I think it's probably easier to become an NBA player than it is to have a successful podcast at this point. But if you're blessed with having a successful podcast, it's a very lucrative business because the means of production here. I did an analysis. For every one person we have, we get about 50,000 downloads or listeners. And I did the same analysis across Comcast and Disney and they're getting about 10 or 15,000 views or listens for every one person or employee they have. So the means of production are more efficient here. And so while these are small business, $20 million isn't a big business. It's very, very profitable. It's growing. 20 to 30% a year. And I think that. And now my Greek glands are going again. I'm starting to think about launching new podcasts, packaging it all. And we're a disciplined company. We try to make great content. We try to be fearless. We try to be entertaining. One of our cultural standards is we overcompensate people. People never think they're overcompensated, but they are, at least here at Prof. G. We are, to a certain extent, monetizing my brand and background. We get exceptional advertiser rates. If you just run ads on YouTube, you know, in an ad network or on AdSense, you're getting two or three dollars CPMs. We get between 30 and $50 CPMs because, see above, we get this incredibly attractive audience, and we make really good money. And I don't want to go through the hassle of hiring and firing and upskilling. So we hire good people I've worked with for a long time or that come highly recommended. We pay them 30 to 50% above market, and they don't leave. And I find that's just an easier, more enjoyable way to run a business and your life, so to speak. So I don't do it to be a good. Well, I try to do it to be grateful and put money back into the economy. But it's also, I think, a business strategy that works if you're blessed with a company that's really profitable. And it's all a bit of a flywheel. The podcast creates speaking opportunities. I make about 4 million bucks a year speaking. I charge an average of about 125, 150,000 a speaking gig. I do about 30 a year, 25 a year. The books, I make about a million million, two on each book. Is that right? Maybe a million and a half, including international and obviously the podcast. The podcast and the speaking support, the books and then the newsletter that goes out every week. We don't monetize or we've just started monetizing. We're making about 8 or 10,000 a newsletter doing. Getting an advertiser sponsor that goes out to about 300, 350,000 people. It used to be half a million, and then we cleaned out the people who weren't. Hadn't opened in a month. A lot of bots. And it all is sort of a flywheel, right? The downloads inspire more book sales. The book sales inspire more speaking gigs. The speaking gigs, you know, inspire more newsletter, newsletter, more downloads. And the wheel flies, right? So trying to create a kind of a content flywheel that supports It. But yeah, it's a nice business. It's a media business, and once you hit a certain scale, it's very profitable. But no, again, let me just finish where I started. Greatness is in the agency of others. What you're seeing or what you're hearing is about an hour and a half of my time. And I would bet every episode is somewhere between 20 and 40 hours of someone else's time. Even the person who runs this company, Katherine, tends to listen to almost everything. There's video editors involved, sound engineers, the producer who lined up the guest who got the questions from Reddit. As you can imagine, it's a decent lift. But like anything, the only really rewarding things, the only way you make a lot of money, the only way you have really interesting life is pretty much directly correlated to just how fucking hard something is. And this is. This is that. Thanks for the question. Question number two. Our second question comes from Pretty Afternoon 7898 on Reddit. And they say, dear Scott, you mention the word baller a lot. Just said it. When describing someone who makes a good income. What is your exact definition of baller? What income level do you need to have to be a baller in your view? Oh, I don't know. That's sort of a amorphous term. Let me start with what does it mean to be rich? Being rich is having passive income greater than your burn, such that your days are yours, that you can. So I am rich. Why am I rich? Because the interest, the income I get from some of the real estate investments, I get passive income. And the income I get from my investment base, which is also passive income, is now greater than my burn. Once you have that, you're rich. Because what that means is you have an absence of fear that if you lose your job or the economy shifts, you're still okay. And everything you do on the weekend and more importantly during the week is your decision. Now, the first time that happened to me was very late in my career. I used to have to get up to work. I used to have to figure out, you know, do shit I didn't want to do. And now there's three buckets. In life, there's things you have to do, right? Your biggest investors in town, it's your, I don't know, it's your anniversary and you have to go to dinner. Not that that isn't great, not that that isn't something I really look forward to, but there's things you have to do, then there's things you want to Do? What did I want to do? I wanted to go to Shay Margot last Wednesday night and meet up with my friends and get shitty drunk. I wanted to do that. And then there's things you ought to do. Oh, the friends in town who you went to college with and be interested in having dinner. Oh, you know, a friend is having her 50th birthday party. You don't really know her that well, but she invited you because you know, she like. And then I'm like, okay. The key, one of the wonderful things about being economically secure is you can eliminate the should bucket. There are a lot of networking events and interesting things. I was invited to go on MSNBC yesterday. I've been making a lot of comments about the political situation. I should do that. It'd be good for my brand. Okay, I don't want to. I have no interest in going on for eight minutes and speaking to some anchor on MSNBC about the same fucking thing over and over that they've been talking about all day. So I've gotten rid of the should bucket. So your ability to excise the word should means you're rich, but generally speaking, your passive income is greater than your burn. That is the definition of rich. My father, who between Social Security and his pension from the Royal Navy makes I think $52,000 a year. He spends 48 one cause his son is paying for his health care. But even before then he was still in savings mode. My dad is ruthlessly cheap and he was still saving money at the age of 94. That's rich. I have another friend who ran a very large division of a bulge rack investment bank made between 3 and $10 million a year. In between his ex wife, his alimony, his home in the Hamptons, his Netflix or his Net Jet card. I think he spent most, if not all of it. And there was no way he could stop working. His passive income was not greater than his burn. He is not rich. So this is a way of saying, how do you become a baller? You figure out a way, a financial path. You have the discipline, you have the skill to make money, you have the discipline to save. And then chart a path towards a point where your burn will be less than your passive income. That's what it means to be wealthy or rich. And in my view, that probably means you're a baller. Thanks for the question. We'll be right back after a quick break.
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General Assembly Representative
Support for the show comes from NetSuite. How your business adapts to unexpected changes can make or break your company. And that's certainly true today, with supply chain squeeze tariffs and trade policies changing unpredictably. Arguably, it's never been more important for your business to be nimble and able to adapt to whatever challenges come. That's where NetSuite comes in. NetSuite by Oracle is your AI powered business management suite trusted by over 42,000 businesses. NetSuite is the number one cloud ERP for many reasons. It brings together accounting, financial management, inventory, HR into one suite. Netsuite grants you visibility on global shipments to tariff impacts to real time cash flow. With real time forecasting, you're peering into the future with actionable data. And with AI embedded throughout, you can automate a lot of those everyday tasks, letting your team stay strategic. Netsuite helps you know what's stuck, what it's costing you and how to pivot fast. Now that's how you make your business adaptable to an unknown future if your revenues are at least in the seven figures. Download the free ebook Navigating Global Trade Three Insights for Leaders at netsuite.com Prof. That's netsuite.com profile.
- [17:24]
Scott Galloway
Support for the show comes from Charles Schwab. At Schwab, how you invest is your choice, not theirs. That's why when it comes to managing your wealth, Schwab gives you more choices. You can invest and trade on your own plus get advice and more comprehensive wealth solutions to help meet your unique needs. With award winning service, low costs and transparent advice, you can manage your wealth your way at Schwab. Visit schwab.com to learn more. Support for the show comes from Mercury. It's the fintech that brings all the ways you use money into a single extraordinary product. Now you can quickly and easily send money, pay bills, create and send invoices, issue reimbursements to your team and more without having to toggle between a dozen apps and services. Visit mercury.com to apply in 10 minutes or less. Mercury Banking that does more Mercury is a financial technology company, not a bank. Banking services provided through Choice Financial Group column NA and Evolve bank and trust members fdic.
- [18:33]
Podcast Producer
Welcome back. Our final question also comes from Reddit. Marion asks how much of the hiring discussion looking for cultural fit and the ideal candidate is really people trying to fancy concepts for intelligence, conscientious and motivation. Okay, so essentially what you're asking is what is the value of the interview process? I think that interviewing is mostly worthless. Well, okay, there's a culture test and that is we like to have everybody provide some input. I mean almost everyone has black ball power. They don't have the power to hire people, but almost everyone has black ball power. What do we mean by that? Because in a world of remote work, I think it's really important that people get along. People want to spend time with each other. They're motivated to make their own plans to get together. And we're mostly remote. We have. What's interesting is everybody says young people don't want to work in an office. Our young people organically got a workspace in Brooklyn, and most of them show up pretty much every day. And maybe it's because, I don't know, it's a sample selection bias. And that is the people we have are kind of overeducated, ambitious, very economically motivated young people. But I think it's important that everybody. I don't wanna say like each other, but enjoy or can tolerate each other's company. Because I think it's important in a remote world that people do wanna get together on a regular basis in person. And I think it's really nice when they get along. I send my kids. I send my kids, my employees on trips all the time. And I think it's fun for them. I think they look forward to it. I think they brag about it to their friends. And I think it's a huge kind of form of soft compensation. And so it's important that they. They at least minimally get along or have enough respect for each other, where they could go to Tulum for three or four days and get along and not dread going to dinner with that person. So almost everyone has veto authority. But generally speaking, my total hiring strategy is reference hiring. And that is. I got an email today from someone who said, I have someone coming out of MIT this year and he's just fantastic. And I'll look at his background, I'll ask the team, you know, what do we think? And then have people meet them. But we basically make the decisions on reference hiring. And the nice thing about having a small company is you can do a decent amount of research on any individual. I get fooled all the time in interviewing. I've had the most. I think the best interview I had was a woman who came out of. I forget where she came out of AIG or something like that. She came to one meeting with me and then went on disability leave. She claimed she had an ear problem, which is fine, but would show up for all the social events. So clearly her vertigo or whatever she was suffering with seemed to temporarily rescind when there was a social event but couldn't come in for work and then sued the company after we got acquired and basically got paid for two years after coming into the office for a day, she was clearly gaming the system, you know, pretty much an unethical person. And I thought she was just incredible when I interviewed her and then other people I've interviewed and thought, God, that person was just brightened up the room by leaving it. But then somebody that's worked with them, they said they're outstanding. In sum, you want to find anyone they give you as a reference you don't call. You want to find people that they don't know you're calling, who've worked with them, who will give you a no mercy, no malice appraisal of them. And if somebody I trust says to me this person's outstanding, I don't care if I have a role or not, I don't care if we need people, I'll hire that person. Because in a company, and this is essentially every company right now, where you're not blessed with an amazing brand or enormous capital, it's all about the people. So and nobody can predict the greatness in people except for other people. So in sum, the interviewing process for us is really something. We don't take that seriously. We do it as a sanity check to make sure this person isn't an asshole and people would like to work with them. But we're mostly entirely reference hiring at this point. That's all for this episode. If you'd like to submit a question, please email a voice recording to officehoursovtub.com Again, that's officehoursovtomedia.com or if you prefer to ask on Reddit, just post your question on the Scott Galloway subreddit and we just might feature it in an upcoming episode. This episode was produced by Jennifer Sanchez. Drew Burrows is our technical director. Thank you for listening to the prop G pod from the Vox Media Podcast Network. Foreign.
- [23:01]
Scott Galloway
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