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May 13, 2024 • 56min
Shaan Tells All: Shepherd Sells For $52M, Paper Gains, Plus Why B2B Influencers Are Coming
My First Million
In this episode, Sam Parr and Shaan Puri discuss the recent news that Nick Huber, co-founder of The Sweaty Startup, acquired a majority stake in the company Shepherd for $29.7 million, valuing the company at $52 million. This represents a huge win for the founders and investors involved.
Shaan Tells All: Shepherd Sells For $52M, Paper Gains, Plus Why B2B Influencers Are Coming
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Key Takeaways
- Nick Huber, co-founder of The Sweaty Startup, acquired a majority stake in the company Shepherd for $29.7 million, valuing the company at $52 million - a huge win for the founders and investors
- The concept of an "audience co-founder" - partnering with someone who has a large, trusted audience to dramatically lower customer acquisition costs - is a powerful business strategy
- The three key elements for a successful audience co-founder arrangement are: 1) A large, trusted audience 2) Product-audience fit 3) Ability to create viral, shareable content around the product
- Investing in your P&L (Profit & Loss) by becoming an investor/owner in the companies/products you use can be highly lucrative, even if you're not the founder
- The "curse of familiar riches" - once you reach a certain income level, your brain becomes wired to only see paths to 1-2x that amount, rather than 10x or more
- Actively challenging yourself to find ways to 10x your income, rather than just incrementally increasing it, can unlock new possibilities
Introduction
In this episode, Sam Parr and Shaan Puri discuss the recent news that Nick Huber, co-founder of The Sweaty Startup, acquired a majority stake in the company Shepherd for $29.7 million, valuing the company at $52 million. This represents a huge win for the founders and investors involved.
The conversation then pivots to explore the broader concept of the "audience co-founder" - the idea of partnering with someone who has a large, trusted audience to dramatically lower customer acquisition costs. Sam and Shaan dive into the key elements that make this strategy successful and share examples of how it has been leveraged by various creators and entrepreneurs.
Topics Discussed
The Shepherd Acquisition (0:00)
- Shepherd is a company that provides offshore talent and recruiting services, founded by Marshall Haas
- Nick Huber, co-founder of The Sweaty Startup, initially had an affiliate deal with Shepherd, then became a partial owner
- Sam Parr also became a partial owner of Shepherd about a year ago, helping to drive 300% growth in the past year
- Last week, Nick Huber announced he had acquired a controlling $29.7 million stake in Shepherd, valuing the company at $52 million
Investing in Your P&L (5:44)
- Sam learned the hard way that he should have invested in the companies/products he was using early on, rather than just trying to grow his own startup
- Becoming an investor/owner in the companies you use and love can be highly lucrative, even if you're not the founder
The Ballsiness of Nick Huber (7:57)
- Nick Huber could have coasted on his self-storage business, but instead chose to aggressively expand into new ventures
- Acquiring a majority stake in Shepherd was a "ballsy move" that Sam is excited to see play out
- Nick is known for his relentless work ethic and physical competitiveness, which translates to his entrepreneurial pursuits
The Evolution of Celebrity Partnerships (13:42)
- Celebrity partnerships have evolved from simple endorsements to more integrated co-founder arrangements
- Celebrities now often take equity stakes in the brands they promote, rather than just being paid for endorsements
- This allows celebrities to leverage their audience and influence to drive growth, rather than just being paid talent
The Audience Co-Founder (17:04)
- The concept of an "audience co-founder" - partnering with someone who has a large, trusted audience - is a powerful business strategy
- The three key elements are: 1) A large, trusted audience 2) Product-audience fit 3) Ability to create viral, shareable content
- Examples include Russell Brunson with ClickFunnels, Hormoz with School, and Sam/Shaan with Shepherd
A Large, Trusted Audience (20:30)
- Trust is the key - having an audience that will actually take action on your recommendations
- Metrics like followers and impressions are less important than the depth of trust and engagement
- A test is whether your audience would show up to an event you announced, even without promotion
Product-Audience Fit (20:30)
- The product/service must be a good fit for the audience in terms of price point, relevance, etc.
- The best fit is when the founder/co-founder has personally experienced the problem the product solves
That Viral Touch (21:42)
- The ability to create viral, shareable content around the product is key
- Examples include Logan Paul's stunts promoting Prime, or Shaan/Sam's workshops for Shepherd
- Creators who excel at this, like Dr. Disrespect, are able to monetize their audience much more effectively
A $280 Million Tumbler Company (29:29)
- Sam interviewed the founder of Simple Modern, a tumbler/mug company that did $180 million in revenue in 2022 and is expected to do $225 million in 2023
- The founder is based in Oklahoma and has pledged to give away 7-10% of profits to charity, aiming to give away most of his $200 million net worth while alive
Giving as You Go (31:10)
- The Simple Modern founder has been giving away a significant portion of his profits since the early days, rather than waiting until he's older
- Sam and Shaan discuss the importance of giving away money in a way that feels slightly uncomfortable, rather than waiting until you're "rich enough"
- Sam has done this by pledging to give away $35,000 on his birthday and donating ticket proceeds from a Tony Robbins event
The Curse of Familiar Riches (37:11)
- The "curse of familiar riches" is the tendency to only see paths to 1-2x your current income level, rather than 10x or more
- This is because your brain becomes wired to the income level you're used to, making it hard to envision radically higher earnings
- Actively challenging yourself to find ways to 10x your income, rather than just incrementally increasing it, can unlock new possibilities
Seeking 10x Outcomes (39:57)
- Rather than just looking for ways to 1-2x your income, force yourself to only consider options that could 10x it
- This "short-circuits" your brain and forces you to think more creatively about new possibilities
- You can then decide whether to pursue those 10x options or not, but the exercise itself is valuable
For the Same Inputs, More Outputs (48:32)
- The goal should be to find ways to get 10x the results from the same inputs, rather than just linearly increasing inputs
- An example is trying to get 1 million views on a video without 10x the work of creating it
- This "act as if" mindset can help shift your decision-making without necessarily changing your spending habits
Conclusion
This episode provides a fascinating look into the world of audience-driven business models, the power of investing in your P&L, and the mindset shifts required to unlock 10x growth. The Shepherd acquisition story serves as a case study for the audience co-founder concept, while the discussion around the "curse of familiar riches" and seeking 10x outcomes offers valuable insights for any entrepreneur or ambitious professional.
Overall, Sam and Shaan's conversation highlights the importance of leveraging your existing assets (whether that's capital, audience, or expertise) to create outsized returns, while also emphasizing the value of giving back and maintaining a healthy perspective on wealth and success. This episode is a must-listen for anyone looking to take their business or career to the next level.