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May 8, 2024 • 54min
CEOs Pay Him $10,000 Per Appointment?!
My First Million
In this episode, Sam Parr and Shaan Puri discuss a potential billion-dollar business idea, the incredible profitability of stock exchanges, and highlight an entrepreneur they're dubbing the "hustler of the week."
CEOs Pay Him $10,000 Per Appointment?!
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Key Takeaways
- Shaan proposes a $100M+ business opportunity in creating an "executive health checkup" service modeled after the Mayo Clinic's offering, but located in major tech hubs like the Bay Area, LA, and NYC
- Sam and Shaan discuss how stock exchanges are one of the most profitable business models, with the Intercontinental Exchange (owner of the NYSE) and Nasdaq generating 60% profit margins
- Eric Ries provided Shaan valuable advice early on to "shoot your old idea in the head" when pivoting, rather than trying to blend the new and old
- The "hustler of the week" is Danielle Baskin, an entrepreneur creating unique, viral products like branded fruit, bike helmets, and other quirky concepts
Introduction
In this episode, Sam Parr and Shaan Puri discuss a potential billion-dollar business idea, the incredible profitability of stock exchanges, and highlight an entrepreneur they're dubbing the "hustler of the week."
Shaan kicks things off by proposing an "executive health checkup" service modeled after the Mayo Clinic's offering, which generates over $100M per year. The idea is to bring this high-end, concierge medical service to major tech hubs like the Bay Area, LA, and NYC.
The conversation then shifts to the fascinating world of stock exchanges, which Sam and Shaan describe as having one of the best business models ever created. They dive into the Intercontinental Exchange (owner of the NYSE) and Nasdaq, which generate profit margins around 60%.
Later, Sam shares valuable advice he received from entrepreneur Eric Ries about the importance of "shooting your old idea in the head" when pivoting, rather than trying to blend the new and old approaches.
The episode culminates with Sam and Shaan highlighting their "hustler of the week" - Danielle Baskin, an entrepreneur creating unique, viral products like branded fruit, bike helmets, and other quirky concepts.
Topics Discussed
The $100M Executive Health Checkup Opportunity (0:00)
- Shaan proposes creating an "executive health checkup" service modeled after the Mayo Clinic's offering, which generates over $100M per year
- The idea is to bring this high-end, concierge medical service to major tech hubs like the Bay Area, LA, and NYC, charging a $10-20K annual membership fee
- Shaan believes this trend of health optimization will continue growing, with the "high net worth class" making it a "high status thing to do"
- Sam is intrigued by the potential, noting how surprising it is that people can have serious health issues go undetected until it's too late
$15K/Month Lead Gen Arbitrage (12:58)
- Sam shares a story about three 20-year-old entrepreneurs running a marketing agency
- They go to local business bureaus, convince small businesses to let them create promotional videos, then sell them on running Google Ads and building websites
- This simple model is generating $15K/month for the young founders, who are "grinding it out" while living on their own and door dashing on the side
- Sam respects their hustle, noting "great stories begin exactly like this" - simple, not sexy, but awesome
The "Pizza Meter" - An Ingenious Indicator (17:25)
- Sam explains the "pizza meter" - a way people on the internet track impending global crises by monitoring spikes in pizza deliveries to government buildings
- This started during the Cold War, with Soviet intelligence using indicators like this to try to detect potential conflicts
- The "pizza meter" has been used to predict events like the invasion of Kuwait, the Iraq War, and the recent Iran strikes
- There's also a "gay bar index" that tracks foot traffic to monitor government activity
Shaan's "Mount Rushmore of Indexes" (19:41)
- In addition to the "pizza meter," Shaan highlights other creative economic indicators:
- The "Big Mac Index" - uses the price of a Big Mac to gauge purchasing power parity between currencies
- The "Waffle House Index" - tracks Waffle House restaurant closures as an indicator of storm severity
- These quirky, unconventional indexes highlight people's ingenuity in finding novel ways to track economic and geopolitical trends
The Incredible Profitability of Stock Exchanges (24:54)
- Sam and Shaan discuss how stock exchanges like the NYSE and Nasdaq are among the most profitable public companies, with 50-60% profit margins
- This is due to the exchanges' software powering other countries' stock markets, their ability to compete for high-profile IPOs, and the network effects/regulatory barriers to entry
- Shaan is fascinated by the Long-Term Stock Exchange (LTSE) founded by Eric Ries, which aims to incentivize long-term thinking for public companies
Eric Ries' Advice: "Shoot Your Old Idea in the Head" (33:20)
- Sam shares valuable advice he received from Eric Ries when pivoting his own startup
- Ries told Sam he needed to "take your old idea, bring it to town square, and shoot it in the head" rather than trying to blend the old and new approaches
- This direct feedback prevented Sam from making the common mistake of founders being afraid to admit when their assumptions were wrong
- Ries used Instagram's pivot from location-based check-ins to photo filters as an example of the importance of being explicit about changing direction
The "Hustler of the Week": Danielle Baskin (41:20)
- Sam and Shaan highlight entrepreneur Danielle Baskin as their "hustler of the week"
- Baskin has created a variety of unique, viral products like a "branded fruit" company that prints logos on produce for corporate events
- She's also launched quirky side projects like bike helmets, an "escape room for newborns," and a "SaaS for witches" offering interactive tarot card sessions
- Baskin is described as the "female Pieter Levels" - an entrepreneur who quickly spins up cool, remarkable products that market themselves
- The quote "marketing is the tax you pay for an unremarkable product" is used to explain Baskin's success
Conclusion
This episode of My First Million covers a diverse range of business ideas, insights, and entrepreneurial stories.
Shaan's proposal for an "executive health checkup" service taps into the growing trend of health optimization among the affluent, while Sam and Shaan's deep dive into the profitability of stock exchanges highlights the power of network effects and regulatory barriers.
The advice from Eric Ries about "shooting your old idea in the head" when pivoting serves as a valuable lesson for founders, and the profile of Danielle Baskin showcases an entrepreneur creating unique, viral products through creativity and hustle.
Throughout the conversation, Sam and Shaan demonstrate their keen eye for identifying interesting business opportunities, unique economic indicators, and inspiring entrepreneurial stories - providing listeners with a fascinating glimpse into the world of startups, innovation, and unconventional thinking.