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July 1, 2024 • 1hr 5min
The Simple Newsletter Making $20M+ A Year With 1 Employee
My First Million
In this episode of My First Million, hosts Sam Parr and Shaan Puri interview Kevin Van Trump, a successful entrepreneur in the agricultural space. Kevin shares his journey from rural farm kid to commodities trader to creator of a farm newsletter generating $20 million in annual revenue. The conversation covers Kevin's business model, insights on the agricultural industry, investment opportunities, and advice for entrepreneurs.
The Simple Newsletter Making $20M+ A Year With 1 Employee
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Key Takeaways
- Kevin Van Trump runs a highly successful agricultural newsletter business called The Van Trump Report, generating around $18 million in annual revenue with just 4 staff members
- The newsletter provides insights on agricultural markets, commodities trading, and rural/farming topics to over 30,000 paying subscribers
- Kevin emphasizes the importance of gaining new perspectives by intentionally putting yourself in unfamiliar situations, like attending conferences outside your industry
- There are significant opportunities in agriculture and related industries, including technology applications, sustainability initiatives, and roll-ups of blue-collar businesses
- Succession planning is a major issue in farming as the current generation of farmers ages, creating opportunities for new entrants and investors
- Kevin advises focusing on businesses that provide high value and uniqueness to maximize profitability and growth potential
Introduction
In this episode of My First Million, hosts Sam Parr and Shaan Puri interview Kevin Van Trump, a successful entrepreneur in the agricultural space. Kevin shares his journey from rural farm kid to commodities trader to creator of a farm newsletter generating $20 million in annual revenue. The conversation covers Kevin's business model, insights on the agricultural industry, investment opportunities, and advice for entrepreneurs.
Topics Discussed
The Van Trump Report Business Model (00:45)
Kevin explains the origins and growth of his newsletter business, The Van Trump Report:
- Started in 2007 as a personal journal to improve his trading and investing
- Began sharing insights with friends, which circulated in the industry
- Launched as a paid newsletter for $40/month, now charges $600-660/year
- Has grown to 30,000-40,000 paying subscribers across 45 countries
- Generates approximately $18 million in annual revenue
- Run by a small team of just 4 people, including Kevin
"We've got several congressmen, senators, a lot of big trading groups, hedge fund people, and yeah, probably 35, we're probably the 30 to 40,000 range on paid subscribers," Kevin shares about his readership.
From Rural Farm Kid to Commodities Trader (08:05)
Kevin recounts his unconventional path into trading:
- Grew up in a small rural town in Missouri
- Got a job in Chicago through connections in the NFL
- Started as a phone clerk on the trading floor with no prior experience
- Worked his way up trading currencies, treasuries, and eventually agricultural commodities
- Leveraged his rural background to explain markets to farmers back home
"I would just dumb it down to my, you know, my back home, speaking in more of a blue collar, and just tell them, hey, here's what they're really meaning or saying," Kevin explains about translating market information for farmers.
The Van Trump Business Philosophy (16:18)
Kevin shares his approach to evaluating business opportunities:
- Uses a matrix of uniqueness vs. total value to categorize opportunities
- Aims for high value, high uniqueness businesses for maximum profitability
- Avoids low value, low uniqueness ventures
- Emphasizes that "people buy value, not price"
- Focuses on the "customer continuum" - balancing between light and heavy users
"If you get up into the upper right quadrant...high value, high uniqueness, that's where you can create high gross, that's where you can create high margin, and that's where you can make a lot of great things happen," Kevin advises.
Poker vs Chess Analogy for Business and Life (20:43)
Kevin uses a poker vs. chess analogy to describe his approach to business and life:
- Life is more like poker than chess - there are hidden elements and luck involved
- Even brilliant people need some breaks to succeed
- It's important to capitalize on "hot streaks" when things are going well
- Pull back and be cautious when luck isn't on your side
- Professional poker players only play 15-20% of hands, while amateurs play 50%
- In business and investing, it's crucial to wait for the right opportunities
"If you think you're a genius and you're just smarter than everyone else, I think you run into a ton of problems and a ton of roadblocks," Kevin cautions.
Wealth Building Through Real Estate and Farmland (28:20)
Kevin discusses his approach to building wealth outside of his newsletter business:
- Invests newsletter profits into other businesses and real estate
- Significant wealth has come from real estate investments
- Owns various properties including commercial, single-family homes, farmland
- Involved with AcreTrader, a platform for fractional farmland investing
- Farmland prices have increased significantly, with some areas reaching $20,000/acre
"A lot of our wealth building has come from real estate," Kevin reveals about his investment strategy.
The Future of Agriculture and Investment Opportunities (32:37)
Kevin shares insights on trends and opportunities in agriculture:
- Wealthy investors increasingly interested in agricultural assets
- Succession planning is a major issue as current farmers age
- New technologies emerging for livestock monitoring and management
- Growing interest in direct-to-consumer meat sales from ranchers
- Potential in sustainable aviation fuel made from soybeans and corn
- Increasing demand for farmland for solar, wind, and data center projects
"We're seeing a ton more buyers and bidders come in for land, people wanting to put in solar, you know, solar fields, to create energy, wind fields," Kevin notes about the changing uses of farmland.
Alternative Proteins and Lab-Grown Meat (47:55)
Kevin offers his perspective on the future of alternative proteins:
- Believes lab-grown meat will continue to gain market share
- Expects improvements in flavor and cost reduction over time
- Compares the trend to the gradual adoption of electric vehicles
- Acknowledges resistance from traditional farming communities
- Sees potential for significant disruption in the long-term
"I think as they get more money in the labs, they're getting better at reducing the cost and creating better flavor. And I think as those two things continue to move forward, just like with Tesla and Elon Musk, you know, it's only a matter of time," Kevin predicts.
Opportunities for Young Entrepreneurs in Agriculture (50:00)
Kevin highlights areas of opportunity for aspiring entrepreneurs:
- Air quality monitoring and improvement technologies
- Carbon markets and reducing carbon footprints in agriculture
- Water usage optimization and purity improvements
- Technologies related to rare earth minerals for electric vehicles
- Blue-collar business acquisitions and roll-ups
- Trade schools and skilled labor shortages
"I think there's gonna be a big push with air quality or, you know, just the quality of air from this whole virus just to testing for the viruses," Kevin suggests as a potential area of opportunity.
Gaining New Perspectives Intentionally (55:30)
Kevin emphasizes the importance of seeking out new experiences and perspectives:
- Attends conferences and events outside his industry
- Pushes himself to go even when initially reluctant
- Looks for "gold nuggets" of insight to implement in his business
- Encourages an open mind to learn from diverse sources
- Values the different perspectives gained from younger generations
"Each time I went, I took away several little gold nuggets that we implemented into our business models, and, h**l, we've made big returns on them, each one of them," Kevin shares about the value of new experiences.
Conclusion
Kevin Van Trump's journey from rural farm kid to successful agricultural entrepreneur offers valuable insights for aspiring business owners. His emphasis on gaining new perspectives, focusing on high-value opportunities, and adapting to industry trends has been key to his success. The agricultural sector presents numerous opportunities for innovation and investment, from traditional farming to cutting-edge technologies. By staying open-minded, continuously learning, and strategically positioning themselves in the market, entrepreneurs can find success in this evolving industry.