Where Is the Moat When Everyone Can Make Content?

0:00One of the things that, you know, a lot of founders, entrepreneurs are thinking about the moment is producing content. >> Mhm. >> We're living in in in an interesting time where a kid in Mumbai or a kid in Manhattan can both produce content using LLMs, uh AI. They can produce videos theoretically. If you imagine any rate of improvement, they're going to be able to make videos, photos, turn out your quotes. They could use your quotes, change them a little bit, and have an agent post them for them. Where is the moat in content? Where you think about If you think about supply demand dynamics, there's

0:27>> Yeah. >> fixed demand. The Financial Times did a report saying that time spent can both produce content using LLMs, uh >> Interesting. >> For older generations, it's still sort of like going up or or flat, but for Gen Zs, it's like starting to come down a little bit. So, stagnant demand, tsunami slope coming in of AI content. >> Yeah. >> Huge supply shock. Every unit of content itself is going to become less valuable, therefore. Um and the algorithms are getting more violent, or I should say are becoming more um Someone with 10 million followers can get 2,000 likes.

0:59Back in my day, like 15 years ago when I started on social media, if you had a million followers, you got a million a million likes, or a million views, should I say. What's the game of content in such a world? Everyone's Everyone's making content now. >> To your point, what's the moat? Um reality is the moat. >> Reality is the moat. >> I'd say the number one biggest business influencer, I think on the planet, is Elon Musk. And he happens to own the biggest business on the planet, be the richest man.

1:25Uh Jeff Bezos, huge business influencer, cuz he has Amazon. Warren Buffett, probably the number one investing influencer. Like people fly around the world and when he when he talks, everyone listens. And so, even if a teacher in Des Moines, Iowa, word for word quotes Warren Buffett, and let's do one better. Let's say makes even better advice than Warren Buffett does. It's still not going to get the same views because they just forgot to build Berkshire Hathaway and have a hundred years of track record. And so, what I'm saying there is that when reality is the mode, it means that your brand is the mode. It means your reputation is the mode, which can only happen in reality. Now, that said, I do think it's going to affect different types of content differently.

2:07If you're in the world of making fictional whatever stuff, then yeah, I think it's going to hit I think AI is going to hit you much harder. But even then, there's still going to be the the standard holder. Somebody has to determine that this slop is too sloppy. >> [laughter] >> And that you still have to work really hard to make the AI make exactly what you want and have it at the caliber that you want it to be at. >> Have you made any changes to your content because of everything that's going on with algorithms and AI? >> Yeah.

2:33I'm focused on only doing things that only I can do. >> Mhm. >> Most people can't get hundreds of business owners to fly out in person every month that are all million-dollar-plus business owners to seek advice on real business problems at 3 million, 5 million, 10 million a year, 500k a year. Most people don't have that. And so, I can demonstrate expertise in a live and interactive fashion a way that other people can't do. I think that live is something that I mean, AI maybe in the future will have some AI avatars that can go live, but at least in the short-to-medium term, I think live is good. I think IRL, as in like, it's actually real people talking, which is we talked about the Scalar Velocity that we just launched, it's real entrepreneurs and there's stakes involved. I think that is something that is not going to be replaced. But if we think about content on this continuum, all right.

3:27Let's make this continuum risk. When I say risk, it's the risk that a consumer has in consuming the content and executing on it. And so, if we differentiate entertainment and education, as entertainment, the point of the content is to be consumed. It's the only objective of entertainment. The point of education is to change behavior, right? So, if that's our that's our split. Now, entertainers will get hit harder than educators will.

3:52The entertainers that have stakes involved will be able to maintain that moat by still focusing on IRL real stakes, real stories. Now, in the education world of risk, let's put something that's really low stakes. There we go. So, we've got beauty on the side. If I have an AI influencer who does a makeup tutorial, I don't think the risk is super high that if, you know, if the tutorial's good, that a girl's like going to not use the tip that they made in the thing.

4:19I think that's pretty likely. If you go maybe a little bit riskier, let's say I have some personal finance stuff. Well, what's the credit So, the credibility in beauty is beauty. The credibility in personal finance is do you have personal finances? Right? So, who's the number one influencer in personal finance? In my opinion, I think it's Dave Ramsey. He also happens to be, I don't think he he calls himself this, but I think he's a billionaire. And he's got a massive I think he's public $300 million a year of revenue that he's done.

4:48And I think there's some other newer newer age people I think Vivian Tu is is she's a personal finance person. I think Erica Colberg touches in this. She's the legal legal gal. Um Anyways, all this to say, all of them have more credibility. Like, if you just start giving out tips on how to save money, there's no credibility. Reality. There's no reality. You have nothing to back it up. Now, as you keep moving further, let's say business, where if you make a wrong call, you could lose your business. Here you lose some money.

5:19Here you lose a bad day of makeup. So, the risk goes up. The riskier or the higher the consequences of being wrong, the more people are going to, I think, double down on credibility of source. >> What's interesting is I also heard as you're describing flying these 100 business owners out to Vegas, is I heard scarce, hard and scarce. And I still thought a lot about these two words as sort of the pillars of my own content strategy, which is with an LLM, yeah, I and Sam Bik can out a video. Um but the reason why we have, you know, somewhat of a moat here still is because it is hard to shoot on nine cameras. It is hard to bring Alex Hormozi here. It is hard to get Alex Hormozi to say yes to doing this. It is hard to get Michelle Obama or J.D. Vance to say yes to doing this. So, there's it's hard from a production perspective, but also from like to accomplish this is hard. And then what you described, I heard a lot of the like I heard hard and scarce. Who can bring 100 entrepreneurs to Vegas who are all successful in their own right and and have them ask you questions. So, that's great content for us to watch. It's like really impossible to to

6:26>> Very hard. If I had only had a $46 million exit, I don't know if I would attract the number of entrepreneurs that that we do now. But now that we do 250 plus schools, a billion dollar plus company, it's like I have credibility that the the the YouTube, the content, right? Is not like I we I still do business. You know what I mean? We have chains of brick and mortar that that we're involved in. I just still talk about it cuz it doesn't it's not relevant for most people.

6:51>> Let's look at the opposite then as well just to show people what the opposite of hard and scarce or of this approach is. What types of content should we all kind of stay away from now? >> So, I think commoditized tips and tricks, um when you have no again, like proof is in the pudding. Reality is the moat. It's basically the opposite of that. So, if you are posing, if you are pretending, if you have no proof um that you are good at this thing. Again, this is on the education side, then there's a big I call it the big Vegas uh wispy. Why should I listen to you?

7:20Right? Why should I listen to you? >> [laughter] >> And if you can't answer that question for I'll say a a prospect, you know, a prospective customer within the first like couple of seconds, they'll just listen to somebody else. Because the reason that credibility matters so much is that it's actually lower effort to consume information from somebody who's an authority. And so, if I'm if I'm listening to somebody who doesn't have proof, and I'm listening to investing advice, I have to really think like, is this true, does this make sense? If I'm listening to Warren Buffett, I don't have to think that. I'm like, I'm sure he's right. And when someone's like, how do I get into this? You do what no one else can do.

7:50Well, if you are getting in, then document like document the proof of effort. So, you can do pro- you can have proof of outcome, just like what we do, right? What you do? But then there's when you're starting this proof of effort. Jimmy's first viral video is him counting to like a million. It's proof of effort. When you have nothing else, you have time, you have work. If you want to make If you want to say, "I want to I want to get into s- into sales stuff." It's like, record your entire day of you selling.

8:16And then when you overcome something that's really good, that's real life with real stakes, clip the moment, right? And show yourself as like, "I took 22 calls today. Let me tell you the best moment I did it I did a 12-hour day in 3 minutes. I'll give you the best moments." It's like, people want a deal. And so, I think about that as a compression of time. And the reason that people listen to the people who are further ahead, who've done all these things, is because we can compress time. You say, "Hey, you could try and figure this out on your own, but if I can compress 14 years of business advice into 37 minutes, that's a good deal."