My First Million Guest: Jack Smith, sold a company for $800 million at the age of 29
Jack is known for his interesting personality and contrast to Rob's human optimization approach
Jack optimizes his purchases and conducts extensive tests and rankings, leading to being banned from Amazon multiple times
Jack used to take advantage of Bonobos' return policy to get a new wardrobe every year
Similarities between Jack and Rob's unconventional habits (planning returns and planting poops)
Jack's company was called Vungle and he started it at the age of 22 (corrected from 21 or 20)
Jack's First Company
Started in an accelerator/incubator with a different idea that didn't work out.
Created a mock-up PowerPoint presentation for a mobile ad network.
Developers showed interest and committed to spending money if the product was built.
Hired a developer, Bryant (now co-founder of Webflow), and built the business.
Revenue grew to millions per day within seven years.
Sold the company for around $800 million.
AppLovin started later but became significantly bigger.
Being first to market is not always necessary.
AppLovin did not limit themselves to video ads; they embraced all forms of advertising.
AppLovin's technical expertise and more extensive market share capture contributed to their success.
Unique strategies used by Jack's company:
Focused on video ads instead of traditional banner ads.
Leveraged a team in Pakistan to play mobile games and record ads for lead generation manually.
Early Retirement
Retirement and Post-Success Activities:
Jack is an exception among successful entrepreneurs, as he hasn't started another business after selling his company.
Instead, he engages in various unique activities, such as setting up a website for inmates to order books and creating book reports.
Jack is motivated by making an impact rather than accumulating more wealth.
He mentions working on charities and a digital detox center in Portugal focused on helping people disconnect from technology and connect with nature.
Jack's Unconventional Pursuits:
Jack has been involved in activities that have gained popularity later on, such as Ayahuasca ceremonies and silent retreats (vipassana meditation).
He has been doing these practices since 2012, long before they became mainstream.
Jack's silent retreats are less extreme than traditional vipassana retreats, allowing more freedom while still providing similar benefits.
Inspired by Bill Gates' think week, Jack created his own version by going to an Indonesian place where he could read books and feel re-energized.
Resisting Starting Another Business:
Jack has been able to resist the temptation to start a new business despite seeing various business opportunities.
He mentions having a list of random ideas that he's considering exploring.
Business Idea's: Nomad Capitalist
Nomad Capitalist Business Model:
Nomad Capitalist is a company that helps wealthy individuals navigate international tax strategies and obtaining multiple passports.
They act as resellers for tax lawyers, offering marketing and brand-building services.
They charge a $25,000 retainer and provide clients with an eight-page report recommending tax strategies.
Clients can use the retainer towards the proposed services or keep it if they don't proceed.
Nomad Capitalist's success stems from their marketing prowess and their ability to attract clients who prefer convenience and trust their brand.
Reseller Layer Business Opportunity:
Jack suggests building a reseller layer on top of industries that struggle with marketing or effectively communicating their services.
He cites Nomad Capitalist's success as an example and believes similar approaches could be applied to other industries.
The idea is to create a strong brand, write a book, appear on podcasts, and offer curated services as a trusted source.
Think and Grow Rich and Dave Ramsey's Business Models:
Think and Grow Rich and Dave Ramsey operate similarly, acting as resellers for tax strategies and financial advice.
They charge a fee for connections to tax strategists and advisors.
The additional money paid by clients goes towards their central agency, which takes a significant cut of the service's markup.
Dave Ramsey's large platform, including his podcast, books, and website, serves as a lead generation tool for financial service providers who pay to be certified.
Router Business Model:
The discussed business models can be categorized as router businesses, where a trusted source directs customers to relevant services.
The router acts as an intermediary and receives compensation for connecting clients with service providers.
RTFM (Read the Freaking Manual!)
"RTFM" stands for "Read the Freaking Manual."
Jack emphasizes the importance of reading manuals and guides to understand how tools and technologies work effectively.
Many people don't read manuals and struggle to figure things out on their own or resort to watching YouTube tutorials.
Jack suggests that by becoming knowledgeable in tools like Mid-Journey or Chat GPT, one can offer premium services to those who are too lazy or busy to learn themselves.
He mentions an individual running workshops and charging business leaders for AI implementation advice, despite lacking significant credentials.
The conversation touches on CaseText, a company acquired by LexisNexis for $750 million, primarily due to their development of eight proprietary prompts for OpenAI's text generation.
While the investor report states the purchase was for the prompts, there is more to CaseText's offerings as a platform used by thousands of law firms.
The conversation also refers to Mark Cuban's early success with his company Micro Solutions, where he attributed his expertise to reading manuals and becoming the only one knowledgeable in the field.
Jack discusses the value of being an expert in a specific area by investing time in learning and understanding the tools and technologies associated with it.
Why You Should Hack the Apple Vision Pro
The conversation explores the concept of non-obvious barriers to entry in business and the potential for discovering opportunities through hacking or exploiting new products.
An example is given of how the company Vungle hacked the ability to record the screen of an iPhone when it was not a built-in feature.
Initially, there was no practical application for this hack, but later on, when Vungle developed a video ad network, their unique ability to record the iPhone screen gave them a competitive advantage in creating high-quality videos for app advertisements.
Vungle leveraged this advantage by offering to create videos for free for clients who spent over $25,000 on their advertising network, which differentiated them from competitors who used traditional methods or expensive creative agencies.
The conversation suggests that finding and exploiting unique hacks or capabilities in new products can create barriers to entry and be the foundation for a successful business in a related industry.
The idea is proposed to hack and jailbreak the Apple Vision Pro, a new product, and discover proprietary functionalities or features that can be leveraged to build a business.
It is recommended to return the product within the 14-day return window and potentially repeat the process in different Apple stores to continue exploring opportunities.
Jack Smith on the Law of Attraction
The conversation revolves around the Law of Attraction and its practical applications.
The hosts discuss the different beliefs and mindsets surrounding the Law of Attraction.
Jack shares his belief in the Law of Attraction and its practical applications based on his experiences.
He recounts a story of his roommate who initially had a negative mindset and struggled to raise funding for his business. However, after adopting a positive mindset and taking massive action, he successfully raised a seed round of funding.
Jack emphasizes the importance of belief, taking action, and projecting conviction in achieving desired outcomes.
The hosts discuss the concept of adopting different mindsets and personas to enhance personal performance.
They explore the idea of a virtuous cycle, where strong belief leads to decisive action and positive results, reinforcing the belief further.
Jack's humble and mild-mannered nature is praised, and his ability to remain grounded despite his success is highlighted.
The hosts express their admiration for Jack's insightful and diverse perspectives on various topics.
Jack shares an example from his experience in the ad network industry, where he challenged the traditional pricing model based on video views and instead focused on desired user actions.
His unconventional approach paid off, leading to successful outcomes for his business.
How to Unschool Yourself
The conversation is about unschooling and the concept of self-driven learning.
The conversation includes a book recommendation titled "Don't Tell Me I Can't," written by a 14-year-old boy who shares his experience with unschooling.
The boy's family was poor, and he was not homeschooled but unschooled instead.
Unschooling allows children to learn whatever they want and find useful without following a specific curriculum.
The boy learned various skills, including repairing cars and starting his own business at a young age.
The drawbacks of traditional schooling, such as exams and curriculum restrictions, which can hinder the fun and curiosity of learning.
The idea of creating alternative learning environments like Forest School, where children can learn through play and exploration.
The potential concern of a child lacking motivation or interest in self-driven learning is raised.
The possibility of hiring tutors or finding alternative approaches if a child wants to pursue a specific career that requires credentials.
A discussion about a buckwheat pillow that helps alleviate neck pain.
The conversation ends with a mention of the supplement called shilajit, which the guest finds to be impressive among the various supplements he has tried.
The guest expresses appreciation for the podcast and suggests doing another episode in the future.