The Business of Strip Clubs, Black Friday Boycott, and Three Twitter Scenarios | My First Million with Shaan Puri and Sam Parr

Check out My First Million’s Episode Page & Show Notes

Key Takeaways

  • “Strippers know a recession is coming before anybody”– Shaan Puri
    • Based on the psychology of spending at strip clubs
  • “Black Friday is like a license-to-spend when you didn’t even need to spend”– Shaan Puri
    • Sam wants to boycott Black Friday, he hates the idea of buying stuff that you don’t need
  • Shaan’s three scenarios for how Elon’s Twitter takeover may play out:
    • 1. Elon makes Twitter more finically viable and everything settles in
    • 2. Twitter becomes the everything app
    • 3. Negative snowball effect on Elon’s finances
  • Continue reading for more detail and to see which scenario Sam thinks is most likely

Intro

  • Can strippers predict a recession? Should we cancel Black Friday? How’s Elon’s Twitter takeover going to play out? Shaan and Sam cover it all!
  • Hosts: Shaan Puri (@ShaanVP), Sam Parr (@TheSamParr)

The Business of Strip Clubs

  • Background: Eric Langen (@RicksCEO) was dating a stripper when he was 21 years old. She often complained about how mistreated she was at work. So Eric took some rare baseball cards he had collected and sold them for $44,000, with the intent to make a strip club that treats its employees fairly. This investment turned into a strip club enterprise with an $800 million market cap, known as RCI Hospitality Holdings Inc and publicly traded as $RICK.
    • Growth: Buys local strip clubs and adds his operational strategies
    • Marketing: Famous rappers, like Drake, often talk about Eric’s strip clubs in their songs
  • “Strippers know a recession is coming before anybody”– Shaan Puri
    • Based on the psychology of spending
  • The wand does not choose the wizard
    • Anecdote: Shaan tells a funny story of a friend who just recently got out of a long-term relationship and was going to his first strip club. He didn’t know you could pick which stripper you wanted to the back rooms with, he thought “the wand chose the wizard” like in Harry Potter. And when he went to the back rooms (which made Shaan and his friends freak out), he actually just wanted a “tour” of the place—nothing happened lol.

Black Friday Boycott

  • “Black Friday is like a license-to-spend when you didn’t even need to spend”– Shaan Puri
    • Shaan likes being a consumer way more than an e-commerce business owner during Black Friday
  • Sam wants to boycott Black Friday
    • “A house is basically a pile of stuff with a cover over it” – Sam Parr quoting George Carlin
    • He hates the idea of buying “stuff” that you don’t really need

Three Twitter Scenarios

  • Shaan’s three scenarios for how Elon’s Twitter takeover may play out:
  • 1. He makes Twitter more finically viable by cutting costs, adding subscriptions, and less dependent on ad-revenue. Culture reset settles in, resolves the bot problem, and creates a fair system for moderation.
    • “This is far too reasonable… This is like asking Picasso not to paint.” – Sam Parr
    • Bonus point. Since many large advertisers have pulled out of Twitter, it opens the door for smaller brands to get much better exposure through ads on the platform.
  • 2. Twitter becomes the everything app, similar to WeChat. From paying bills to short-form videos.
    • “(Western) people aren’t just going to change their habits and just ditch eight apps for one because [Elon] wants them to” – Shaan Puri
    • Daily active users (DAUs) would have to grow exponentially
    • But if he pulls it off, Elon would be viewed as the GOAT for turning Twitter into a super app as his side hustle
    • “I think this is more unreasonable than the first scenario” – Sam Parr
  • 3. Elon has a financial cave-in from a downward spiral of bad news
    • More advertisers pull out, hacks are possible after impulsive infrastructure changes, Tesla value falls due to recession or lack of consumer trust (too busy with Twitter). Currently, the profits from Twitter can not cover the debt.
    • Analogy: As a boxer or MMA fighter, if you don’t quit while you’re ahead, you retire on your back. Same for a business. The bigger your bets, the more inevitable your failure becomes.
    • “I don’t think a guy like Elon has the ego-control in order to do it, and I think this final scenario is more likely than the other two.” – Sam Parr
  • Conclusion: Whatever happens to Twitter, you have to respect Elon’s capacity for suffering over long periods of time – “most of the greats are tortured souls” – Shaan Puri

George Hotz: The Tech Cowboy Fixing Twitter Search

  • George Hotz: Outspoken technologist most well known for developing iOS jailbreaks, reverse engineering the PlayStation 3, and working on comma.ai which is an advanced driver assistance system that can be retrofitted to any car
    • “We gotta get this guy on the pod. He’s one of those freaks that I love… He’s like a cowboy that builds stuff that is incredibly illegal and unregulated. He just plows through and does it anyway.” – Sam Parr
  • George recently did a live stream where he looked at the inspect page while on Twitter – according to the code, he says that they are doing exactly what it takes to win
    • George and Elon agreed to 12 weeks of work (no pay, just cost of living) to come to fix Twitter search – he’s that excited about it

My First Million Bullet Points

  • Empty-leg private jet flights – 25% to 30% of all private jet flights are completely empty (relocating). There are marketplaces for these flights with reduced and negotiable prices for these empty private flights.
  • fatFIRE subreddit – Stands for Financially Independent Retired Early. Something everyone is striving for, but it’s not all sunshine and rainbows. This subreddit lets people anonymously and honestly share their experiences.
My First Million : , , , , , , , , ,
Notes By Drew Waterstreet

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