Investing in YouTube Channels

On today’s podcast, we’re gonna be talking about investing in crazy digital assets or digital companies that happen to invest in YouTube channels. YouTube channels are a form of the big three in terms of the digital world, eCommerce, SAAS, businesses, and content websites, simple passive cash flow is a content website, except I’m not looking to put out some crazy NTF thing to lets you all invest in simplepassivecashflow.com.

It is a passion project of mine. It’s been a great way to meet a lot of you folks and build a list of cool people. That came out to Hawaii. Once a year, we are going to be doing that little mini wine tour in Napa valley. Actually, it’s not gonna be mini. It’s probably gonna take us the whole day of visiting several wineries.

We get on the bus, everybody gets to meet each other and make sure you go apply there because these days we vet everybody who comes. You’re a weirdo. You don’t get to come. And how do we figure out you’re a weirdo? We get to know each other. And we are also a big enough community that a lot of people coming in these days are referrals from friends.

So we’ve got a tight knit circle at this point. So no random strangers. And I think our group is the only group out there. Is not just like a fake to you, make it be a general partner one day because you’re broke and you’ve got nothing else going on. You know, Most of our investors, although they are in there, they are younger, maybe in their thirties, forties at the youngest.

And I say that with a lot of respect, a lot of you guys make so much more money than I could ever personally have done in the professional world. And you guys are high performers. Individuals in all your own respects that often we put on these events, I’m very flattered by the people who come.

But the thing that ties us all together is, we are pretty financially minded and we appreciate financial freedom, but we also understand that we need to invest with people we know, like or trust and have a small. Community of other purely passive accredited investors. Not a bunch of people who are looking to get to know us on a loose basis and want us to invest in their first deal because there’s a lot of fake team make groups like that.

Trust me, been there, done that and also got the t-shirt and lost some money doing it. There are a lot of those types of organizations out there, but we are not one of ’em. We are an exclusive passive investor group. So if you’re looking to grow your net worth from one to 10 million, number one, check out our family office, Oana mastermind, but just, check us out.

We usually let people come to an event at least one time. Check out our community. And then see what it’s all about because personally, I didn’t really start to get outta my shell until 2015 and 16 when I started to realize, wow, there’s a lot that could be gained from, master mining informally with other investors.

And then when I started to join different other higher level groups, of course you have to pay a lot of money for that. And that’s what I did, but there’s really nothing out there for the purely passive accredited investor. Which is what I sought to create with simplepassivecashflow.com. Hopefully you guys can join us on October 1st in Napa valley. Simplepassivecashflow.com/napa is the info page for that.

And here we are talking about YouTube channels, but Hey, let’s make one thing clear folks, just because we have somebody on the podcast doesn’t mean that I’m saying to invest with. Actually I am saying the opposite. If we have somebody on the podcast or you see anybody on any podcast do not invest with them.

Podcasts are a great way to create that sort of fake type of influencer, all that content type of stuff to conjure up, fake amount of followers. That’s just how the Al coin. World is created in all these discord channels out there. To me, the only way you can really figure out if something is legit is to know another purely passive accredited investor, get to know them organically and build a true deep connection and see where they put their money and have had a good experience with it. And I’ll tell you guys, anybody can do a podcast. It just takes a certain character, these days to do it. Thanks for listening again, guys and enjoy the show.

Hey simple passive cashflow listeners today. We’re going to be talking about a different kind of investment that I’ve been looking at in this realm of buying, not hard assets, real estate, but working businesses, no family offices, they don’t invest in all this equity stocks, mutual funds types of stuff.

That’s a very small minority portion of their portfolio when reality. No it’s businesses or a huge part is real estate. Someone even says at least 50% of their high net worth portfolios. Now not saying that you guys should do this, or just show us any sort of investment advice. You’ve got to be silly to think that you can listen to a bunch of podcasts and get a bunch of financial advice and even further.

You’ve got to be even more silly. Or if you think that you can just go on a podcast, land, figure out who a bunch of operators are and start investing with them. Do not do that guys, unless you would like to win the financial Darwinism award of the year. All we’re going to do today is talk about a little bit of a different opportunity.

I’m not investing in it personally. But again, I just want to expand people’s thinking, right? Because when you expand people’s thoughts to other things that you didn’t think were investible or in the arts world, you start to do private money lending, or, you go into a multi family deal or you buy a rental property, by expanding yourself, going a little bit past your comfort zone. You get past that block where you were originally. And a lot of you guys, just quite frankly, by some rentals or get into. Or move from 90% into equity stocks, mutual funds and get maybe 10, 20% into being outside.

I want to introduce Michael call-up who works for an eCommerce content website? That produces YouTube videos. And you guys watch a lot of YouTube videos out there, but it’s pretty profitable for those folks out there that get a lot of views and you can turn it into a business with Michael and his partner.

But we’ll start off at the top, right? Because I think most people here are pretty familiar with investing in alternatives, such as real estate. And that, that one line they’re just crazy real estate as alternative investments, wherever they go wrong or get to the macular. But let’s get into something I’ve been interested in personally over the last few years, as someone who runs simple passive cash flow in a content website, where I create a bunch of content.

And it creates relationships with people and then I’m able to do the masterminds. We do the events, we do, all kinds of things under this umbrella of simple passive cashflow. But Michael, why don’t you just give us a quick outline of different businesses within the internet space.

It’s funny you say it’s good going back 20 years ago, I owned a cleaning company, and so I bought it. I had worked on wall street for 10 years. Got burnt out, and had my first kid quit. Didn’t know what I was going to do. Ended up buying a franchise. It was a cleaning franchise and I got really bored with it.

And 2007. So I got into the online space and started my first, what is now today called drop shipping. It wasn’t really a thing back then. But I would cold call. Like companies like Hoover vacuums and stuff like that. And the microphone I’m speaking into, I used to sell this online and we would drop ship it directly from the manufacturer.

And the online space, as we all know has shifts, escalated tremendously and particularly with COVID. You mentioned YouTube before we saw a huge spike and people now that they’re homework sitting there online watching YouTube. And I was pretty active with my e-commerce company, which I sold in 2013.

And then also started investing in software company SAS at that time. So I had a Twitter automation tool that we had 10,000 users with. And that was great because it was recurring income. And so somebody just signs up for a piece of software. If you build. That software can run itself.

And then we had individuals in the Philippines and Morocco that handled the customer service for the customer. So that was a tremendous investment for us because that was just consistent money coming in $50 a month. But each of those customers until Twitter suspended our API which is always a risk in any type of a software business.

And I went from 10,001 at night to zero the next morning, zero. Which was like an, oh no moment, but, throughout that time, one thing I’ve always done is use content to brand myself because that’s great. And I’ve always been fascinated with YouTube, met this individual. His name is Saad and he was working for you, familiar with what family offices are.

It’s a little bit. We run the family office, Ohana mastermind. A hundred million dollar families and above are defined as family offices. But what do you do when you’re going from one to a hundred? That’s the kind of group that we have. It’s more of a coaching format. People want to get more involved with that. Join our inner circle, simple passive cashflow.com/journey.

So you’re very familiar with it. So what side was doing is for that family office, he was actually doing this on YouTube. So creating content, it was all what’s called faceless videos. So maybe, like somebody famous, Evan Carmichael Evan Carmichael, a lot of his videos online to all faces. So I, the motivational ones. 10 quotes from Steve jobs, right? And people love specialties. I can engage the entrepreneurial world with that type of content, and it can get a million to three, 10 million views.

And so what’s great is obviously, as we both know on YouTube, once you have been approved by YouTube to be monetized, which means you have a thousand subscribers and 4,000 watch hours. Every time somebody watches that video, it’s like owning a piece of real estate where you’re getting passive income from rent, or you’re getting paid passive income every time somebody watches that video.

The definition of faceless videos for the folks, it’s one of those really dry, boring videos where you get the, sometimes it’s a bit of an animated narrator, but it can be very boring. The copywriter, whose text is typically good, it’s not like a YouTube influencer, if you guys like YouTube, go to my rich uncle’s channel. We try to make it more for the kids out there where it’s more personable and it’s easier to listen.

Whereas if somebody just reads something to me, I just drown out personally. But the cool thing is you can turn and burn these things and you can, Shern this stuff out with very bold, cheap labor. Cheaper content writers to turn the stuff and you can turn it into a machine it’s repeatable. You don’t need to get lucky, like with an internet influence.

Not at all. You just have to be very good with SEO and understanding what people are searching for online, what they’re interested in, and then very good with, from the SEO standpoint ranking the video. So it gets seen because there is a ton of content out there. And so some folks might always say, Yeah, I know content creators and their stuff never gets seen. It could be that they don’t understand SEO. So before we dive into content, we’ll back up, we talked about SAAS. So SAAS, as you build a little web app or application. I don’t know what are some things that are common that people think of.

So if you, on social media you most likely use some type of social sharing tool, right? Like a Weber. These are, they’re not entrepreneurs, so they’re not using sweets or things. Like a lot of the web apps that entrepreneurs will use, but. MailChimp looked at MailChimp today. MailChimp is a SAAS company. MailChimp was just purchased this morning by Intuit for over, I think it’s $12 billion and that’s a privately owned company, but that’s a piece of software right at the end of the day. All right, man is a more consumer one. Correct me if I’m wrong, but like the way I look at SAAS businesses, the cool thing is recurring revenue, but.

You create a product, but then now you’ve got to go sell it. So it’s more of a sales and biz-dev type of yeah. Yeah. And so that’s SAS. Then the other third one is e-commerce. Which you mentioned you started with now, this is something every guy under the age of 35 years old thinks that they can run an ecommerce business, but you guys are 20 years too late.

Maybe if you can list off the brews in this space and we say, it’s probably not good to spend $2,000- 5,000 for stuff like that and I would tell everybody to be very careful when looking at that online, like a lot of folks are Bellflower, I believe is the name. We’ll say, oh, we can start you through Shopify and online drop shipping business.

Nothing to do, just, invest $5,000 in this program or what have you. The reality is everybody else is selling that same product that is listed on a site across. And so it’s a race to the bottom, right? There’s no branding. You’re not going to be able to compete and there’s so many people, I waste so much money on those. And the only people where he makes the money are the ones who are selling courses. On how to do this and a lot of them have never even done it themselves. They watched a program and then they just came on. Like I’ve literally got into that drop shipping was not a word like back then.

I didn’t even know that I was drop-shipping. I used to go to conferences and literally go from booth to booth, just introduce myself, say, Hey, do you sell online? And they would be like, now, we haven’t cracked that yet. We sell online and would love the opportunity to have a conversation and just, I would assign on it eventually three years later, I was selling 200,000 products and then all of a sudden drop shipping became a thing.

So it’s crazy. I forgot the name of the Dan Martell site. He’s a big guy in software but I’m listed on it. And I had done a lot of poaching on drop shipping back in like 2015, 2018 frame. I still get so many calls from it, from people that have bought these courses. And aren’t anywhere from it because they thought it was so easy and everybody just said, Hey, it’s a passive investment.

It’s not, it takes a lot of work. You have to be good at Facebook ads. You’ve got to be good at SEO. It’s more than people think. And you’re competing with people that are like the general masses and it’s high competition and people that live in their mother’s basement. That’s all hours of the day. You think you can work a six-figure job.

Do this on your side type. You’re incredibly mistaken. That’s, you’re not a professional by the true technical sense of the word. You’re not a full-time person doing this type of stuff. And maybe what are some of the other things they tell you to do in this industry? Like they tell you to send them those cards with your product, say, Hey, we’ll send you another one.

If you just give us a good review, or we’ll bake, we’ll pay you guys 50 bucks. Or they’ll find influencers on spark, Toro, whatever, and they’ll pay them to shoulder their ad or they’ll just straight pay them for review. They’re just, although they tell people they can become an influencer today, and what’s funny is like so many of them have been called out online because they go out and they buy fake subscribers and then, they’re charging people to be an influencer again, another passive investor. But it’s very not because they’ve called out eventually they burned their account and then they got to start another one.

Yeah. It’s like when you have a really ugly kid and that they’re ugly. And then they, the modeling company comes and says, oh, we can make them famous. You just have to pay $300 for this total package. Yeah, I got a, I got to say my daughter’s gorgeous. But I fell for one of those. I didn’t fall for it. They got her on Instagram and said, oh, come on. And the next thing you know, we went in, there was a modeling runway, and then dad’s in the back saying, did you love watching your daughter on this one way?

And I was like, yeah, this was awesome. They’re like, listen. She’s got potential. And for this, you can I think it was $3,500 for a two month program Dyke. We can get her amazing gigs. And if you want to do this, which was a $5,000 program and it was just bam, LACO, yadda, and fall for it. But I know friends of mine who have actually paid for it.

And then they say like at the end of the two months, they’re trying to upsell them another program. It’s just it’s me, again, as a parent, I can’t stand Pam, people like that. So that’s like the e-commerce world, right? You’re buying and selling. The people who are doing it right there, they’re flying their butts over China or wherever at the manufacturer, building those relationships.

And 100% you have to I’ve had stopped. And so I did a lot with I was doing this thing that was called an H2O mop and, I bought a half a container sold out of it. I thought it was amazing. I bought a full container. It was a six figure investment while it was being shipped here to the yes to the U S in Edison, New Jersey.

I got served a cease and desist from an individual by his name of Kevin. What’s what’s his name? Harrington. Remember, but not herring, but he is a, this guy is a shark tank guy. What is his name during the blank, but anyway, he’s from as seen on TV. And so the mops that I was buying. At night in this plant in China, apparently they would swap and use the same molding, but then use different boxing.

And so he basically reverse engineered find everybody that found everybody that was purchasing them and dropping drop shipping them, serve them with a cease and desist. So I was stuck with this whole container and almost lost a hundred thousand. Luckily I came up with a clever way to get rid of all them all, but I was like, I am never doing this again.

And that’s, if I fly my butt, like you said, over to China to work with somebody. So that’s the e-commerce, we’re all it’s like one of those things where it’s if it’s too good to be true, it probably is you don’t have to have any inventory. The people that do this right. To fly their butts over the China, and they have the big warehouse here at the states, the house, all these multiple schools, like thousands of schools or products.

Yeah. But so we’ll talk, we’ll stop talking about e-commerce cause that’s something and it’s. We’ve we mentioned SAS, we’ll get off SAS, which is that subscription type of web app. And we’ll now diving more into the third, which I’m both familiar with the content, and the content can be a kind of a a faceless video.

Some of you guys are aware of like, whenever you Google something, there’s some like more like HubSpot and like different kind of aggregator kind of website. Visit Hawaii, or, where people will they’ll create that buzz, that domain authority, and then other websites, or, or people who want to buy ad space will pay under.

And this is how the internet works. But it’s more, what I like about it is being an investor. I like to throw thing I’m more low, always. Long-term I like to do things. A minimal to semi hard work, but they offer the returns far in the future and it’s guaranteed. You just have to wait.

It’s real estate deals or planting vegetables in the garden. You do enough content and you, as you stay consistent and you’re halfway decent, you might get somewhere in the future. Do you guys talk a lot about the author of rich dad? Poor dad. Which I not see. Cause he’s just a, he just an influencer, right?

That’s all he said. That’s why I, you bring up like, he, he is big with content. He’s a content, that’s where he makes a lot of his money is the content side. And when you mentioned YouTube before he’s got a ton of faceless channels. Not only is he, an investor in real estate, but he’s a very big investor into content.

And in fact, I don’t know if people realize, but like he does a pretty good job. He’s a chameleon, right? He’ll use that book, which is jamming. That’s a good book, right? Like I wish I had that book, but he’ll use it and he’ll do it to different things. I think we all see from the real estate end, he’s also pushing it to a bunch of young kids doing SEO.

E-commerce stuff that you have to own your own business. I see it as the lead magnet for essential oils companies. There are all these little vomit paws, but that’s the thing. Yeah. Tony Robbins, he’s a big one too, right? Like he has so many different like ways he monetizes this influence.

He’s got like the fight. He affiliates with financial planners. He just dumped his last guy. I forget the new guy. He works with, at JVs with, but he’s got all these like health type of products. This, it’s brilliant, When you, as the consumer kind of understand this little game that’s being played.

You start to realize that Santa Claus is not real and Easter. Bunny’s not real. Yeah, I’ll stop now. It’s it is a game, but I, I can say again, I’m 49. I’ve owned a lot of different businesses and have just been involved in a lot of things. And you think the grass is always different until you’ve already get in and you learn the way that it’s being operated and that it is a game and that it does take work at the end of the day.

And it, it takes. What is the same, like luck and opportunity is just, you need luck, but you also need to put yourself in the right position to be in that red spot. But you also needs, you also need luck. So I think a lot of people listening are very familiar with financial blogs, the financial, the PF blogosphere.

So I’ve been always into this space as a consumer reading content. I don’t really these days because they’re just a bunch of broke guys who don’t buy any caught $4, $5, lots of. And they don’t like to go into debt, but I went to fin con one year, which is the, just, I think it was in Florida several years back.

Yeah. There’s like 10,000. He’s a MC a certain level of bank at 10,000 financial blogs slash podcasts.

They did. And so it’s going on in this month and Austin. So in September I believe, and so I’m not going this year. I go more to network and just meet that top 10% because it’s all about partnerships and collaboration. But to your point, a majority of them are just, BS and they’re just copying each other’s content and they have no idea what they’re talking about, which is scary.

Like taking financial advice from. Not that 21 year old can’t understand it, but that they have no battle wounds. And they’re just preaching what they’ve read in a book. I don’t agree with that, especially when it comes to money. Yeah. Some of them are really good and the, to me, I got to have lunch with a lot of them and a lot of them have like really, they write really good stuff.

Very interesting pieces, whether I agree with her. But nobody reads it other than themselves. And you can tell. And that’s what I, I look at it as luck, right? As an entrepreneur or a blogger, a YouTuber podcasts, like you can put all this stuff out, you can do a hundred, 200, 300 podcasts, which to me is like the level of commitment you have to put through.

But if it’s not good, you’re not going to have anybody listen to it. But even if it is good, you may not hit success, which is okay. And that’s where your guys’ model comes in. You guys have picked the video platform, which is a good place to start because everybody watches more videos these days.

That’s the uptrend, but you guys aren’t relying on a shining face, a star, right? Because a star is another rare commodity. Now, these are all non-branded for that exact reason. So we’re sticking more to researching a niche before buy. And so is this niche get a lot of interests more from a viral standpoint?

Yeah, I was speaking to somebody earlier that want to do cryptocurrency And but that comes with a lot of risk. Why while there’s roles on YouTube. And so if you make an investment recommendation that video can not be monetized. And so there’ll be monetize possibly that video with, and also that would mark your channel.

If you were to try to get. Yeah, money from YouTube to show an ad on that. And then all of a sudden, somebody marks it as, Hey, they were making a recommendation. Next thing you know, your channels demonetized, and now you’ve lost out. And we’re very strict with what we will. So we like channels we just we’re looking for an investor in a golf.

That’s a lot of fun. There’s so much you could talk about with dolphin. There’s all kinds of people that are searching that each and every day. So we could review the top golf players in the world. show inside their houses and mansions. We have a sports channel and know we have a video on it that just took off.

It was Floyd. Mayweather’s insane. Car collection. Don’t know why people want to see his car. But they think it’s the coolest thing in the world. It got caught up in the algorithm. And within a few days I had a hundred thousand views. And so that kind of thing will die. But if you really get caught off and you’re putting financial capital, meaning like advertising it on YouTube with some money or with Facebook ads, you can get a video that takes off and is getting a million views a month, which is going to bring you in, several thousand dollars a month in income, just from one video.

And so it’s about stacking good quality videos over and over again, not all of them will take off, but for the ones that do it, it becomes a, an ATM in a sense. , let’s take a. Sports. YouTube channel. But you create, what does it cost to start, on your guys’ part? And, is it just, you have a creative director and like a video editor? Is that kind of how it works? We look at, how many videos is somebody want to upload to a channel and I’m on three basis. Once we determine what that is.

And the niche that they’re in, we then have internal tools that we use called an algorithm. That’s looking not only on YouTube, but outside of YouTube, what are people doing online? What are they interested in? In the masses? We don’t want something. That’s just like a thousand views or 10,000 views. We want to see what our a hundred thousand, a million, 10 million people searching for when that shows up on our radar.

And we see that’s doing good on another channel on YouTube. That then is passed off to our content creation team and what our content creation team consists of is it’s going to be somebody that will actually go out and copyright, write out all of, write a script for somebody who’s our voiceover specialist who will then once that video is created by graphic designers and video folks will then final step go through and do the voiceover of that five to 10 minutes.

And then what we do is once that video is uploaded to YouTube, we have an entire secondary team that’s going to go in and then optimize that video from an SEO standpoint to get it to rank. So when you upload a video, most videos, when you upload them to YouTube, They don’t do much. And so what you have to do is you have to go out and start doing one, putting financial capital behind it and advertising it on Facebook and on YouTube and on Google.

Number one, number two, we reach out to people who have emailed that list to see if you can get them to email out that video. Because again, once more people are watching, it does an algorithm and YouTube, and it starts seeing that more people aren’t engaging with the video. It will start showing that video to more people.

Potentially, the last thing that we’d like to do is when you upload a video to YouTube, you tag videos. And so a tag is basically passive income, real estate investing. So you can put a certain number of tags up for every video. It’s very much a character limit. And you want to watch those when you go into the analytics, which is part of our process every morning for every channel.

It is one of these keywords meaning real estate investor. Maybe our video is ranked on the 12th page of YouTube when somebody typed in real estate investing. But all of a sudden it’s on the second page of YouTube. Why is that? Maybe it’s a different keyword. And so now what we do is start optimizing those keywords.

Changing those tags and that can get a video to really take off on YouTube, which is great. And so a lot of YouTubers don’t do that because they just fully don’t understand it. And that’s why you see a lot of channels that start and then stop because they don’t realize they don’t think there’s a lot of work to it.

They just think, oh, create a video. And then my video’s gonna take off, but that’s not the case. It’s already that secondary step that I was explaining that he causes all that and then the thumbnail, then that was a huge thing. And so we’re constantly changing thumbnails to test it out.

You have to. Yeah. So that’s the process of a nutshell. One question I had is, you start with a new channel, right? Do you start with like maybe a bunch of videos just to get it going? Maybe it does a couple of dozen. Piecewise content just to have something there or do you start right off, start off the bat, you start to really sniper and what are the keywords?

Am I going up through a Floyd Mayweather video that kind of went viral? This is if people haven’t caught on yet, like this is what businesses do. They have a business plan and they add value to in this case, it’s not worth anything in the beginning. It’s just an empty YouTube channel.

We need to fill the content. Yeah. But like on the apartments, we try to do the interior upgrades for us because that’s what people will pay extra a hundred, 200 bucks a month for and exterior stuff kind of gets put to the wayside or whenever it’s convenient or especially at the end, it doesn’t really bring dollars in the bank.

So in this virtual value add kind of business, what do you, what’s the first or is it yeah. So we’re going to, the really initial thing that we’re doing with a channel is when people come in and get started with us again, we’re doing all of the work for them. It’s determining how many videos that they’re going to be wanting us to upload on a monthly basis.

Once that’s decided. That’s the number that we’re uploading, but what we’re really doing differently in the beginning is trying to monetize your channel as fast as possible, meaning that we need to get that thousand subscribers and 4,000 watch hours. So we always allocate a certain amount of dollars.

Every time we upload a video to market that video online, but in the initial six months, what we’ll do to get it monetized faster is we’ll put additional cap. Behind a video that we start to see get some action. So is that, that can help us bam, trigger that channel. So if you can trigger a channel in the third month to get it monetized, that’s just, faster income for an investor.

So that’s really what we’re doing in the earlier stages. A little bit of both, right? You’re making maybe a handful of videos and out of one of those that are the better, best out of the box. Yep. They’re terrible at charging it with paid ads. 100% Google, Facebook, YouTube, and we’re watching it much more closely.

Because sometimes we upload videos for four months. They just, they do nothing, maybe 1,005 thousand views, but then all of a sudden within a three-day time period, we just had this happen with another video. It had over a hundred thousand plus. They didn’t do anything to it. It just got caught in the algorithm. And so the more financial capital we as a company put behind those videos that we do start to see move the faster. It is as a return. So that’s what we’re really doing in the first 3, 4, 5, 6 months of a channel. So you got, I got five videos you uploaded, right?

Most of them suck. Just like most videos where they only get maybe a few hundred views or less. And one of them has. A hundred thousand views, which is a lot of views for a new channel. And okay. How much would you throw down on ads like that? Yeah, like two examples. One of those Floyd Mayweather examples we put in.

Zero money behind it because the channel isn’t owned by an investor, Foley B, so we didn’t put any money behind it, which is fine. It got caught in the algorithm because we were changing words, those tags that we were speaking about a little bit earlier now on the flip side, when we do put financial capital behind it, it’s not a lot like our max that we’ll recommend sometimes it’s a couple of thousand bucks.

And then just bam, once that happens. Do we turn on a per video basis is insane. What is, a hundred thousand views is a lot of views. I think more in practical sense that maybe it goes up to. 10,000. Yeah. We have a fashion channel with that gets, 40 million views a month, 40 million views a month.

But why, like you’re familiar with the compound effect. So the compound effect is you gotta remember, like all those videos were uploading and. We do what’s called evergreen videos. So they’ll still be watched in years 2, 3, 4, because people are still interested in that. We don’t want to put something up like space acts.

Space X is taking off today. Like we want to do a video like that for somebody because it’s relevant to today, nobody’s going to be searching. And three years from now, but you know how space X got started, somebody would be searching for that. You want evergreen stuff. So investors out there, this is like some people like unsophisticated investors, they always invest up like the shiny offic thing.

Like when a hurricane comes in hurricane Harvey, they want to go in there and invest in the area or they always invest in gimmicks, right? Like short-term rentals or something like that. And the certain area during certain times, This is no different what’s going on here. So like the near investor is going after oh, space X, the rockets flying up, or the Tesla model, whatever that is leasing this month, or, like with a Ford F-150 the lightning thing, it just came out. You’d make videos about that, but then nobody watches it. And so that’s where a lot of channels go wrong. It’s 100%. We just said they are missing out on the compound effect. They are because like in three years a channel, if you have strategically thought everything out and created evergreen content consistently followed a formula, done good SEO.

Those videos from one month, one, three years ago are still being watched three years later. And now all those other videos month in and month out. So now you’re stacking. So let’s say you have. 300 videos and you’ve done good work over a two year period and going into that third year. A good percentage of this is still being watched, plus your new videos that are being uploaded, right?

So that’s why from an income standpoint, income appreciates and compounds exponentially as a channel stays older and older. But if it’s not evergreen, It’s not going to work. Yeah. And in this business is a doggy dog world. It is not working at a job where everybody gets paid between a hundred and a few hundred thousand dollars for being really good and halfway decent.

One out of a hundred thousand million youTube channels are good. The rest are just horrible and they don’t do anything. And maybe even if they do have the systems, the staff to do every one little step along each side of this workflow, it’s hard.

I love my son. He’s 19 years old. Yeah he just graduated high school and he’s got a YouTube channel about walking. And he’s always coming in and talking to me in my office about why his subscribers fluctuate or his income fluctuates with it. I’m like, let’s look over your last five videos.

So you have great content. People engage with you all the time about the walking dead, but one out of every five videos you’re uploading you start talking about a new game that’s coming. On whatever he plays. I don’t even know, like I’m not a gamer, buy XBox or something like, so when he’s doing that, it’s I’m like all those subscribers, which look your subscribers decreased when you came out with that video, because they’re not interested in that.

So they unsubscribed, whereas I think a lot of YouTubers, they just, they don’t have a philosophy. And if you want it like a business, you run it like a piece of property, right? Like you, you would do with an apartment building and you have processes in place and you follow. But somewhere down the line, like you, your kid just wants to make fun videos that he likes, which is not the point.

If it’s a. At 100%. And I told him that I was like, if you were going to do this, it’s, you’re not going to college. And his goal is in four years to be making a couple of hundred thousand from his personal channel that he wants to do, then here’s what you gotta do. Cause then he says to me, he’s oh it feels like a business.

What do you want to do then? Yeah, we want a business, you run it like a business. And yeah, now it’s a, and I think that’s where ego comes into play with just a lot of people of any type on the blogs. You see it, and they just never monetize. But I have a good friend that does this in the blogging world.

And so he makes good money for folks. He’s got several different blogs that are managed now that’s harder in my opinion. Because it’s actual content and you’ve got all this AI that’s coming out and writing content that I think you could tell that a robot’s been writing it.

There’s a difference from that standpoint, but yeah, if you understand the content game, it’s a great option. And some insights for the folks, like all the blog articles these days, guys, not the pop, your bubble, but they’re all written by AI. I know what I don’t, I use some of them for the headers and it grabs my research for me, but I can take, I could take it another level, but it just would waste my time or waste the staff’s time in my opinion.

But like you can write, have them write the whole thing out, T3 it’s new technology and it just keeps getting better and better. And it’s all like it’s written by. And this is why you don’t want to do a blog. That’s why, because the robots can do it now. And it’s just minding the waters for the most part.

So let’s go back. Maybe if you can give people some sense, because I want to have some people get excited about this stuff a little bit. So that’s like Mayweather, right? Outlier of course. You got a hundred thousand views without juicing it. That would make what, like 20 bucks a day or.

How much. So every channel is always different. So for instance, YouTube, right now, we’ll pay more for gaming channels. Then they would for celebrity channels. So we have a lot of celebrity channels, celebrity gossip, very popular. But gaming, although, you would think gaming’s huge.

They don’t have enough content yet for the search volume. That’s coming in on YouTube to watch a game. So they’ll pay the same viewership, four X, the amount per view. In gaming now that will change at one point. And it is just so most of the folks, like from an investment standpoint, when they invest, they also want to enjoy the channel.

And so some of them like to share it with their friends and family and what have you, and say that they own this and that’s super cold too. And when you have a video that takes off and an algorithm and it gets a million views, you’ll make $10,000 off. Yeah. So a hundred thousand dollar view video would be like, a hundred bucks, two bucks a day.

Okay. And that will start escalating and then it will also decrease and that in every video. So it just depends. How long has it stayed in the algorithm? When do you take your foot off the gas of putting more fuel behind it? And when do you have to start accelerating? Cause you want it to stay as high.

Also it’s. Can you link for words, like by itself, again, for you with a Mayweather, can you link for just that? So Floyd Mayweather’s house, Floyd Mayweather’s income. Okay. But if you could rank for just the word Floyd Mayweather, how many people are going in and typing injustice. The masses type in that versus what’s called long, long tail.

So we start off trying to rank for the long tail keyword, ultimately trying to come in to a big thing, like passive investing, if we could rank for that, like you yourself, like that’s really big versus in the beginning you got to go long tail. Yeah. So it’s not like for those guys or, trying to find similarities and art assets.

Real estate goes off forever. In fact, the return has go infinite after a certain point, but like the videos here, Floyd Mayweather, he’s not going to be alive for. You could think about an oil rig, people invest in oil and gas or ATM machine. It’s just a decaying asset after a while.

It’s not going to be worth Jack and it’s not going to perform at cashflow after a while. So that’s how you think of it. I need to see as you’re trying to correct. That’s why you have to be putting content up all the time. I see it with people all the time. Somebody bought one of our investor channels for a lot of money and they stopped uploading videos because I had all these say stop for three.

And then I was wondering why like the income was dropping so fast and it was dropping because YouTube rewards people who keep producing content. And that’s one thing too, if you keep producing content, but the quality of the content drops, that’s another thing where the channel will just start dropping very fast.

So it does a lot of work that happens behind the scenes. That folks just don’t understand. But if you understand what happens and you fight. It’s very consistent. It’s predictable. So here’s a hard question to answer, but if you can give just a broad answer. So my flight may weather video.

It’s not mine, but if I, if somebody had it right, that makes a hundred bucks a day, which isn’t much, but it’s showing signs of light. If I turbocharged that thing with, when you say a couple grand of ads, what would the views go up to? Yeah. So 10 million views, they will go exponential a hundred X or is it a thousand?

You could go 10 X you don’t like it. It’s unpredictable from that. So we know we won’t make an investment of one last. We know we’ll make the money back minimum, but obviously the goal is we’re shooting for, can we invest the least amount? To get the most amount of views. Can this video take off and get a different topic?

Basketball. We had a basketball channel and this isn’t very often back. Let’s go back to Floyd Mayweather. So if I put in Joplin a couple grand instead of a hundred dollars a day, what does that go up to? Like a thousand dollars a day could go to 10,000 hours? Yeah. I’m recouping my investment. In that one ad once I found that a winner 100% target that ad you could be.

So how do you get people? What is the $2,000 going towards exactly like what’s the creative that gets people to click on your flatbed weather ad? Or is it just some algorithm that you pay to get in the algorithm to get to the next video or something like that? How would we invest the money internally?

You say for that owner, what does $2,000 to push light men? Weather’s video? What is, but how do you do that? What are we doing? So we’re reaching out to the number. One thing we’re doing is reaching out to other channel owners and cross collaborating with them. Yeah, because CFL promotes our video on their channel and gets a shout out for it.

With a call to action that’s number one, two email lists are huge. So before we’re doing Facebook ads or YouTube ads themselves, definitely outreach is the number one thing. Yeah. So this is, I put this in the category and pay the butts with equity. You can make a lot of money by buying rent, rehab, and repair.

There’s also a lot of risks, but in this case, it’s not really a risk other than just losing gear, your buddy and paying an influencer a hundred bucks and they don’t share, or they share your video, but nobody watches it. It’s a numbers game. It’s reaching out to as many. And that’s why, we’ve had YouTubers themselves.

Come to us to manage the channels because they just, they don’t want, they know what the work is. And so we have a system in place. We follow it. It’s not for everybody. There’s a lot of work. That’s why we’re not afraid. Like we have, it’s an investor manual. I don’t even know 300 pages I think, or 200 and change.

We share everything that we do. I don’t care if somebody can go and take it and try to do it themselves, they’ll realize after a while, it’s hard. You have to be very good, partly right. YouTube changes all the time. And so if you’re not staying up with YouTube rules and what you’re allowed to, one of our biggest investments in.

Is copyright issues. W we’re very careful with that because if you get strikes against your channel the music that you play in the background of a video if you’re using something that’s copyrighted, or if you’re using the actual editing so if I’m using Floyd Mayweather, but I’m showing 12 seconds versus nine seconds of that actual clip, that channel could be flagged for awhile.

And you don’t want that. Cause if you have too many. You eventually lose out from the opportunity of making a return on your investment and we don’t want that. So that’s where we invest internally. A lot is staying up to date with what are those rules? What do we have to do when we’re uploading content?

Because we want to protect. And that’s also why we don’t share a lot of the channels that other investors have, because then you can have competitors going out there and trying to do something to mess with the channel. And we don’t want to do that either. So we leave that up to the investor. If they want to share their channel.

Like I have a family, I think I shared it before. Yeah, I love golf. And they think it’s very cool. They want to share that with their friends, their family. Great. Other than that’s up to them. Yeah. I think what this really comes down to is magnified as if you’re, let’s say you are an e-commerce person, right?

You sell weighted blankets or you sell kitchen chairs. You buy a channel that’s in there, you push your product through it, or it’s funny, you said I just spoke to a big angel investor before I was joining you. And that’s what he’s looking for is he wants to start an entrepreneurial channel.

That’s just going to be like, 10 fun facts about Steve jobs, 10 things that you didn’t know about Elon Musk and his goal is that, to get it to one of those channels that are getting 10 million views on. And then halfway through the video, we’re going to interject an ad. So it will look like it’s coming from YouTube, but we’ll stop our 10 things about has.

And interject and add about, Hey, are you a startup? And if you are, and you’re looking for, financial capital, what have you click down below and come and watch this free 30 minute webinar. And then it will come back into our video that we’re creating. So our content team will always be, just inserting that ad of his, in the middle of our content.

Now that will affect the channel when we go to salvage channel, if you ever wanted to sell it in the future, It’s somebody else’s business advertised in the middle of the video and we can’t change that ever. So that’s the flip side. He doesn’t care about that, but we always make people aware of that.

So that’s what family offices play around, where they buy good businesses that supplement each other that are in the same industry when you are there, they magnify the businesses, others most people here, if you’re. $10 million and above. You’re not listening to many podcasts. Your most people listed are somewhere between one and 10.

Maybe, probably not to that stage, but I think it’s interesting to get insights of how wealthy families do this type of stuff. And it, to me, makes so much sense, but you need a lot of money to pull off fullest, pull this star strategy off. Definitely. Sod, who’s my business partner.

He’s been, that’s how he started. I was doing this for a family office back in 2006. And they were investing over seven figures into this, but they saw the opportunity. They understood. It’s like owning a billboard. Yeah. I don’t know if you’ve ever had anybody on your show about billboards.

But there’s a lot of money in that. And that’s what this story is. This is an advertisement in the middle of interesting content. A billboard is just, a popular road you’re driving down and you see this billboard that billboard owner is making. And, if you look at how family offices have made their money, initially, how they got wealthy as they concentrated one thing, they were an operator of some business and then they diversified into half real estate.

I think that’s the safer way of going to build your wealth over a long period of time. But yeah. You also look at the people. I think Forbes did a study of the fortune 40 or 400, right? The people that were there, that they did a study of the people that left it.

And the reason why they left is because they were too much concentrated area. So what got them there, what was also knocked them off the horse. So it’s a prudent advice is to concentrate in the beginning, whether for a lot of people listening, the way you guys are going to get rich as investing in value.

But, this is 10%. What we do is only 10% of somebody. It shouldn’t be more than 10% in my opinion. I’m a big fan of Charlie Munger. If you haven’t read the book, read old Charlie’s Almanac, it’s like this big it’s phenomenal. But it’s a great book and that’s Charlie Munger. Who’s Warren Buffet’s partner.

That’s the investment philosophy, right? It’s boring. But it’s what makes money consistently over time. And then you can take 10% and try different. But trouble is on YouTube and podcast land. And some of the guys listening are broke, they’re under a million dollars net worth at some of the advice that they say does not apply.

And then you got guys like Kiyosaki spoon off a bunch of random stuff to different chat, different things at different channels, different audiences. And it’s even making it more confusing. Is he saying. Diversification is radiates or something like that. Like it’s just so much noise out there.

It makes it a little difficult. Yeah. And I don’t understand that also. Yeah. I get one folks are like bashing also, you hear with, real estate or whatever, like it’s that? I don’t think so. It’s not going anywhere. I’ve got an investment property. I would never sell it. I’m not going to so yeah, no I’m with it.

That one always gets clicks. The real estate market is it’s going to crash, right? Yeah, what it is. That’s how a company like Buzzfeed has become who they are. It’s this, a very good copywriter makes a ton of money because that’s what they’re doing. I don’t know if you’ve ever heard of our girl financially.

They’re very big in the finance space for newsletters that you can subscribe to for 2000 to $5,000 a newsletter. And that’s all, when you lead through all of that The headlines for the newsletters. It’s all clickbait. That’s very much what it is. Some of the writers are very good.

Don’t get me wrong, and that’s what you’re paying for. They got to get attention in a noisy world learning brew. A great example of a SAS business. That’s just mentioned morning, BU and who’s that that just sold the hustle they do sold to HubSpot and that was brilliant.

This morning, again, MailChimp was purchased. You’ve got the hustle that was bought by HubSpot for 30 million hours. They wanted the audience and it just made sense to TopSpot and it’s a content company. That’s what the hustle was.

And that’s it for the show again, the disclaimer is, do your own due diligence. And people always ask me, Hey, have you heard of this guy? Have you invested with this guy?” Guys? I don’t do that anymore. I’m not giving out any financial advice. If you guys want to get in the inner circle, join the family office ohana mastermind, we’ve got over 70, 80 people in there.

You have to pay to play, sometimes we’ll do events where you guys can interact with some of the live accredited investors within our community, but due to some people finding out about us, if people have found a great place to pull off very trusting investors in our group.

So we’ve had to close the walls, helped Japan in the 19 hundreds. You guys want to join that, go to simple passive cashflow.com/journey. Or if you don’t just throw down your money everywhere and hopefully you don’t blow your leg off, stepping on a landmine. All right. So you guys bye.