
February 19, 2021
The Big Shark Formula | Mark Cuban on The Quest with Justin Kan
Check out The Quest with Justin Kan Episode Page & Show Notes
Key Takeaways
- The pandemic changed countless industries, but one of the most exciting ones for Mark Cubans is blockchain
- “We’ll look back at the pandemic of 2020, particularly the summer, and say okay that was the inflection point of a lot of blockchain-based applications” – Mark Cuban
- Mark is bullish on Non-fungible tokens (NFTs) for art. NFTs prove authenticity and ownership of digital art.
- E.g: The NBA launched Top Shot which sells digital moments just like one would sell digital trading cards
- The world is becoming more and more digital and Gen Z is more likely to buy a digital product than a physical one:
- “They’re going to respect something that’s digital before they buy something that’s physical” – Mark Cuban
- Failure is a great teacher:
- “I learned more from the places I got fired from and the places I worked that I hated than I did from the places I liked. I learned what not to do.” – Mark Cuban
- One of the most important business lessons Mark learned early in his career: Sales cures all
- If you don’t have sales, your business won’t last
- Being young is a perfect time to start a business because you don’t have much to lose
- Mark was living with 6 roommates when he started his first company, it wasn’t like life could get much worse than that
Intro
- Mark Cuban (@mcuban) is the owner of the Dallas Mavericks and investor on the TV show Shark Tank
- Host: Justin Kan (@justinkan)
Books Mentioned
- Cashing in on the American Dream: How to Retire at 35 by Paul Terhorst
Mark’s Drive For Money & Freedom
- Mark grew up without a lot of money so as a kid, he was driven to make lots of money
- However, as he got older, it became more about using money to have freedom and more time
- Mark’s goal was to make enough money so he could quit working and retire as soon as possible
- He was inspired by the book Cashing in on the American Dream: How to Retire at 35 by Paul Terhorst
- Mark’s goal was to make enough money so he could quit working and retire as soon as possible
- However, as he got older, it became more about using money to have freedom and more time
- At 29, Mark sold his company and made about $2.5 million after taxes
- He used that money to invest in the market to grow his wealth while traveling the world and partying
Mark’s Big Exit
- Mark originally funded AudioNet to listen to sports games on the internet
- Once he realized it could be a huge company, he started to invest a lot more of his money and time into the company
- The company was later sold to Yahoo and Mark ended up making a ton of money from the acquisition
- Mark believes the company could have been the next Spotify or Pandora if Yahoo did a better job of managing it but unfortunately their board mismanaged it
- The company was later sold to Yahoo and Mark ended up making a ton of money from the acquisition
- Once he realized it could be a huge company, he started to invest a lot more of his money and time into the company
How Blockchain Is Changing The World
- The pandemic changed countless industries, but one of the most exciting ones for Mark is blockchain
- “We’ll look back at the pandemic of 2020, particularly the summer, and say okay that was the inflection point of a lot of blockchain-based applications” – Mark Cuban
- Mark is bullish on Non-fungible tokens (NFTs) for art. NFTs prove authenticity and ownership of digital art.
- E.g: The NBA launched Top Shot which sells digital moments just like one would sell digital trading cards
- Mintable lets people turn any creation into a blockchain item so they get paid a fee anytime someone uses it
- This means artists, photographers, designers, and other creators can sell their work or license it and get paid each time someone uses it
- The world is becoming more and more digital and Gen Z is more likely to buy a digital product than a physical one:
- “They’re going to respect something that’s digital before they buy something that’s physical” – Mark Cuban
- How does Mark stay up to date with all the new technologies emerging today? He’ll read books, tutorials, network with experts, play around with the tech, etc.
Thoughts on Kids
- Even if you’re extremely wealthy like Mark, you still worry about your kids’ health, safety, and wellbeing
- You also want to spend a lot of time with your kids and play an important role in their lives
- Mark tries to live a modest lifestyle–he doesn’t have butlers or private chefs and makes his kids wash their own dishes
Business Advice for Listeners
- Failure is a great teacher:
- “I learned more from the places I got fired from and the places I worked that I hated than I did from the places I liked. I learned what not to do.” – Mark Cuban
- One of the most important business lessons Mark learned early in his career: Sales cures all
- If you don’t have sales, your business won’t last
- Being young is a perfect time to start a business because you don’t have much to lose
- Mark was living with 6 roommates when he started his first company, it wasn’t like life could get much worse than that
- Always be learning. Change is constant and you need to keep learning to survive and thrive in the world.
- Common traits of successful entrepreneurs:
- They’re nice people
- They’re constantly learning
- They love their products so much that they make it easy for them to sell it
- They’re agile and open to pivoting
Mark’s Newest Company
- Mark recently launched Cost Plus Drugs, which aims to sell 100 different generic drugs at transparent prices
- Mark’s company is starting construction of a pharmaceutical factory in Dallas, Texas that will be able to make produce generic drugs at a low-cost
Additional Notes
- How does Mark manage his time? He doesn’t do calls or meetings
- “For the last 20 years, if you need me, you email me” – Mark Cuban
- By only talking via email, Mark saves time on commuting, small chat, pointless details, etc.
- “For the last 20 years, if you need me, you email me” – Mark Cuban
- Two industries Mark is most excited about: Artificial intelligence and blockchain
- A few of Mark’s favorite Shark Tank companies:
- Simple Sugar–the company went from doing $40,000 a year to doing million a year
- Hug Sleep– the company went on Shark Tank and sold $4 million worth of goods in a couple of weeks