My First Million
00:01:30 · Shaan Puri, Sam Parr
[00:01:30] S1: Okay. [00:01:30] S0: So NADA, I think it stands for National Automotive Dealer Association. It's a big association for auto dealers, and they do this thing called NADA twenty groups. And it started, I believe in the seventies to where if you are an auto dealer, you wanna grow your business and get better. And so what they do is you apply to join and you pay something like 6 or $8 a year to get in, and then they put you in groups of 24, and the groups are non competitive, meaning people who aren't in your region and you fly to the same city three times once a year. And it's very simple. It's the most simple peer group ever. All you do is you bring a P and L statement of your business, of your dealership, and you sit down with 20 others and you go line for line and you explain your profit and loss statement, and other people can look at you and being like, oh, you're killing it. I'm gonna copy that. Or you suck. Have you thought about doing this? And eventually they have started letting in founders of HVAC companies, people who own like marinas or boat repair shops. And the whole premise is very simple, just share their P and L. If I had to guess, it probably does like 13 to $15,000,000 a year in revenue because they kind of say what the member dues are and they say what the price is. But as you saw, when you go to the website, looks horrible. It's horribly marketed. And I think if I'm listening to this and I'm not like an AI nerd, I would do one of two things.
00:02:48 · Shaan Puri, Sam Parr
[00:02:48] S1: By the way, the NADA guy was so excited that he's getting featured on the podcast today. Out of nowhere, his friend sent him this clip. He's listening, and then he just gets the looks horrible, ugly, terrible. [00:02:59] S0: Well, I think it's like a I think it's a good nonprofit. It's an... It's either an association or a nonprofit. [00:03:04] S1: Okay. Okay. [00:03:05] S0: And I would do one of two things. [00:03:06] S1: With all due respect. [00:03:08] S0: Yeah. No [00:03:10] S1: offense, but here's the next five minutes of insults. [00:03:13] S0: Yes. As long as you say that, you could say anything. I would either copy this and just do it a little bit better and run ads because I don't think these guys are ever gonna run ads. [00:03:22] S1: No. Like, it says, for a hundred years, they've been running. [00:03:24] S0: Yeah. That's why it's interesting. They they they they could last forever. I think that you could do this. Do you remember how you had this thing called Club LTV? It was like a community for e com owners. Yeah. I wouldn't, I mean, you could do ecom, but I would do something a little bit less competitive. It's like dentist practices, lawyers, whatever is like boring, where like the average person makes a million dollars a year or, like, in take home income. Whatever is one of these boring things where it's just someone in South Dakota who is just a normal guy, millionaire next door type of energy. Yeah. And I would create one of these, and I think it would be a great, great, great business that could last for decades.
00:03:24 · Sam Parr, Shaan Puri
[00:03:24] S0: Yeah. That's why it's interesting. They they they they could last forever. I think that you could do this. Do you remember how you had this thing called Club LTV? It was like a community for e com owners. Yeah. I wouldn't, I mean, you could do ecom, but I would do something a little bit less competitive. It's like dentist practices, lawyers, whatever is like boring, where like the average person makes a million dollars a year or, like, in take home income. Whatever is one of these boring things where it's just someone in South Dakota who is just a normal guy, millionaire next door type of energy. Yeah. And I would create one of these, and I think it would be a great, great, great business that could last for decades. [00:04:01] S1: This is like White Coat Investors is kinda like this in the doctor space. Right? [00:04:06] S0: I love White Coat Investors. Do you wanna explain what that is? [00:04:09] S1: Yeah. It's basically like, it's a community of doctors, maybe dentists also, but I think it's mostly doctors. But it's for them to talk about more of, like, their finance side of their life. It's not about sharing, you know, the latest and greatest research and how they're applying it in their practice or anything like that. It's more so like, hey. I'm thinking about buying a rental property, and the cap rate is this. What do you guys think? And there's a lot of that going on. They do media, there's Facebook groups, there's like a... It's been going for a long time. [00:04:38] S0: It started as a blog.
00:04:38 · Sam Parr, Shaan Puri
[00:04:38] S0: It started as a blog. [00:04:39] S1: Yeah, it's a successful business, and there's many... There's actually a few others in the doctor space. I think I might have talked about this on the podcast before. I think there's a pretty big opportunity to just do that. But new age model? Because media has changed a lot. Right? Like, what blogging was... Well, today, there's a whole new set of media tools and a whole new set of doctors and dentists that you could reach and build like a a two point o version of this. But basically, every profession kinda has these. There's even another one. You might know the name of it more than me, but there's a version of this that's not for the same job. Have you seen this one? It's like local chapters in cities. [00:05:13] S0: BNI. Wait. Nope. That's body mass index. [00:05:17] S1: BNI. Something or is b... What is it? [00:05:19] S0: BNI, buyer network. By the way, Bayer just acquired, and I heard rumors it was in the billion dollar plus number. [00:05:25] S1: And so explain what they do. So they bring together folks with different jobs. So you'll get, like, the the local accountant with the HVAC guy with whatever. And it's like a... It's kinda like, hey. We're all local business owners. We have some shared problems, but we also have shared opportunity, which is we can share leads with each other. Oh, you're... You could be my guy I refer people to when it's landscaping, and I'll refer you people when it's about, you know, whatever, legal services.
00:05:25 · Shaan Puri, Sam Parr
[00:05:25] S1: And so explain what they do. So they bring together folks with different jobs. So you'll get, like, the the local accountant with the HVAC guy with whatever. And it's like a... It's kinda like, hey. We're all local business owners. We have some shared problems, but we also have shared opportunity, which is we can share leads with each other. Oh, you're... You could be my guy I refer people to when it's landscaping, and I'll refer you people when it's about, you know, whatever, legal services. [00:05:49] S0: Yeah. Basically. And I I used to go to the YMCA, and I would see them have their BNI meeting. And there'd be like 30 people in the room, and everyone has to go through and say some type of, like, lead. [00:05:59] S1: Like, for example at the YMCA. Where do they meet? Like, in the yoga room? Like, what what do they do? Yeah. YMCA is not a coworking space. You're right. Like, what's going on? [00:06:08] S0: They just, like, figured it out. Because it's like a community based thing. And so it'd be like a realtor with a garage door service with a lawyer with a landscape business. So things that are not competitive and they share leads and they just go in a room and you have to say like, this person just moved here. We're doing the garage doors. You know, who wants that? And they just sold. I think they have 800,000 members, and it costs low digit thousands of dollars a year to join. I hung out with the CEO of it, really nice lady from Texas, and they they just got acquired.
00:06:08 · Sam Parr, Shaan Puri
[00:06:08] S0: They just, like, figured it out. Because it's like a community based thing. And so it'd be like a realtor with a garage door service with a lawyer with a landscape business. So things that are not competitive and they share leads and they just go in a room and you have to say like, this person just moved here. We're doing the garage doors. You know, who wants that? And they just sold. I think they have 800,000 members, and it costs low digit thousands of dollars a year to join. I hung out with the CEO of it, really nice lady from Texas, and they they just got acquired. [00:06:38] S1: So are you gonna do just Hampton for every vertical, or are you just keeping Hampton as what it is? You're saying, you know, that's not the move for you, but but, basically, there is some version of peer group for for most professions where people have enough disposable income and, you know, you get the dynamics right where either it's... They can share because it's it's fundamentally not competitive, or you match people, like you said, from other geographies where it's not gonna be competitive. [00:07:01] S0: So the reason why I've been learning about investing is because I think that over the next handful of years, no time soon are we gonna do this, but I think that what we'll eventually do is buy other communities, because I think we know how to operate them well. And I think that the way, like my goal is to build a multi 100,000,000, or sorry, multibillion dollar company, and I think that we can get there by owning a variety of communities.