Latest / Earn Your Leisure / Cliff Notes: HOW AIRBNB TURNED $1,000 BOXES OF CEREAL INTO $38 BILLION
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- 0:00Speaker 1: An illegal alien from Guatemala charged with raping a child
- 0:03Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
- 0:07Speaker 1: accused of murdering a Texas man of Venezuelan charged with
- 0:11Speaker 1: filming and selling child pornography in Michigan. These are just
- 0:15Speaker 1: some of the heinous migrant criminals caught because of President
- 0:19Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
- 0:23Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
- 0:28Speaker 1: crossings are at the lowest levels ever recorded, and over
- 0:31Speaker 1: one hundred thousand illegal aliens have been arrested. If you
- 0:35Speaker 1: are here illegally, your next you will be fined nearly
- 0:39Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
- 0:43Speaker 1: never return. But if you register using our CBP home
- 0:46Speaker 1: app and leave now, you could be allowed to return legally.
- 0:50Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
- 0:55Speaker 1: border and families will be protected.
- 0:57Speaker 2: Sponsored by the United States Department of Homeland Security.
- 1:00Speaker 3: Today's Story. This episode's story will be on Airbnb.
- 1:06Speaker 4: Airbnb, Airbnb and Man amazing story.
- 1:09Speaker 5: Phenomenal, phenomenal story.
- 1:11Speaker 3: So I'll started off in two thousand and seven, right
- 1:16Speaker 3: Joe Yad Drab Gebbia Gebbia and Brian Chesk Sheeshki. They
- 1:23Speaker 3: were both twenty seven at the time, right, and they
- 1:26Speaker 3: lived in San Francisco. If anybody's not familiar to San Francisco,
- 1:28Speaker 3: I believe is the most expensive place to live in America,
- 1:32Speaker 3: highest real estate. I'm pretty sure. I'm pretty Susie, No,
- 1:36Speaker 3: I think it's more explored than that.
- 1:37Speaker 4: Yeah, I'm pretty.
- 1:38Speaker 5: Sure it is.
- 1:39Speaker 3: So they were struggling to pay rent, right, you know,
- 1:44Speaker 3: twenty seven year olds stretch out of college, struggling. So
- 1:47Speaker 3: they lived together. They have like a two bedroom apartment.
- 1:50Speaker 3: I as soon and it was a big conference coming
- 1:53Speaker 3: up in the city of Design conference.
- 1:55Speaker 6: So they both come from the Rhode Island School of Design.
- 1:58Speaker 6: So there was a design conference and they were planning
- 2:01Speaker 6: on a tendon.
- 2:02Speaker 3: Yeah, so all the hotels in the city were booked.
- 2:06Speaker 3: Because if anybody familiar with San Francisco, San frys School
- 2:09Speaker 3: is a very small city. That's why the real estate
- 2:10Speaker 3: is so expensive in San Francisco because it's very small. Obviously,
- 2:13Speaker 3: you have to look on valley nearby and tech industry.
- 2:15Speaker 3: So it's a couple of different things that makes Simranusco
- 2:18Speaker 3: so expensive. It's very small, and you're surrounded by the
- 2:22Speaker 3: tech industry, which billionaires all around, so land is very scarce.
- 2:27Speaker 3: So all the hotels in the city were booked, right,
- 2:31Speaker 3: So they have the bright idea to rent out their
- 2:35Speaker 3: living room for people that are looking for hotels. They
- 2:38Speaker 3: know people are coming into the city and that they're
- 2:39Speaker 3: not going to have anywhere to stay.
- 2:41Speaker 4: Yeah.
- 2:41Speaker 6: I think Joe sends an email to Brian like, hey,
- 2:43Speaker 6: I have this idea, and he shows it that a
- 2:45Speaker 6: lot of his presconsas is I have this idea. Yeah,
- 2:48Speaker 6: you know what, there's no more city, there's no more
- 2:50Speaker 6: hotels in the city, there's no more rooms.
- 2:52Speaker 4: We got something.
- 2:53Speaker 3: So they want to put three airbeds in their living
- 2:56Speaker 3: room on the floor, and they are want to cook
- 3:00Speaker 3: their guest breakfast.
- 3:01Speaker 6: All right, so we're gonna rent the space. We have
- 3:03Speaker 6: some space in the living room, three air mattresses. Not
- 3:07Speaker 6: only we're gonna let people rent that, but like you said,
- 3:09Speaker 6: we're gonna make bread breakfast for them.
- 3:11Speaker 5: So the next day they launched a website.
- 3:13Speaker 3: The website is called air bed and Breakfast dot com
- 3:18Speaker 3: because they give you an airbed and breakfast because they're
- 3:21Speaker 3: gonna make you breakfast airbed and breakfast, hence the name Airbnb,
- 3:26Speaker 3: but at first it was called airbed and Breakfast dot com, right,
- 3:29Speaker 3: So from there they a few weeks later they actually
- 3:35Speaker 3: get three people to come and I think they charged
- 3:39Speaker 3: them eighty dollars.
- 3:39Speaker 4: A night per person per night.
- 3:42Speaker 5: Yeah, right, and it worked out for them.
- 3:46Speaker 3: And then next year is when they really take off
- 3:48Speaker 3: because now they have an idea, they have a business model,
- 3:51Speaker 3: we have a website.
- 3:52Speaker 6: Before they get to the next year, like they're broke.
- 3:54Speaker 6: Oh that it broke, so like that conference came and
- 3:56Speaker 6: it left, and they still can't pay the rent. So
- 3:59Speaker 6: what they did is they took out as many credit
- 4:01Speaker 6: cards as they could. Think he tells the story where
- 4:04Speaker 6: he has well he remember he used to have trading
- 4:06Speaker 6: cards and slip them in.
- 4:07Speaker 4: He had a trading card book. But it was just
- 4:09Speaker 4: credit cards.
- 4:09Speaker 6: And I think they accumulated like fifteen thousand dollars in
- 4:12Speaker 6: credit card that each just to they couldn't take out
- 4:15Speaker 6: any more cash advances on their credit card.
- 4:17Speaker 3: Cash advances powerful tool, very dangerous tools.
- 4:23Speaker 4: We have some stories on them.
- 4:24Speaker 5: Yes, that's a different story.
- 4:26Speaker 3: Okay, So next year, two thousand and eight, there's a
- 4:31Speaker 3: senator that is the talk of politics. His name is
- 4:36Speaker 3: Barack Obama, right, so it is he's running for president
- 4:41Speaker 3: the first time obviously, and there's the Democratic National Convention
- 4:45Speaker 3: which is held in Denver, Colorado. So they gear up
- 4:50Speaker 3: for the Democratic National Convention. Yeah, they got another idea
- 4:53Speaker 3: today saying okay, this is a perfect I think eighty
- 4:56Speaker 3: thousand people were going to come into Denver and not
- 5:00Speaker 3: going to be enough hotels, very similar to what they
- 5:02Speaker 3: did in San Francisco.
- 5:03Speaker 5: But now they want to scale it.
- 5:05Speaker 3: So they want to recruit other people to rent their apartments,
- 5:08Speaker 3: re rent their homes, and then they get a portion
- 5:10Speaker 3: of that and they'll broker it for them.
- 5:12Speaker 6: And yeah, the idea was like, we're going to find
- 5:14Speaker 6: Obama supporters in Denver to open up their homes for
- 5:17Speaker 6: other Obama supporters.
- 5:18Speaker 5: Think you had eight hundred listings. They were able to
- 5:20Speaker 5: find it.
- 5:20Speaker 4: Yeah, they found eight hundred homes and it was great.
- 5:22Speaker 4: They made some.
- 5:23Speaker 5: Money, they made they made a little bit of money.
- 5:25Speaker 4: Yeah someone Yeah not enough, not enough. Yeah.
- 5:28Speaker 6: So they still even after the convention, they still broke no, no.
- 5:32Speaker 3: Before the convention is over, Before the convention is over.
- 5:35Speaker 3: Leading up to it, they have eight hundred homes and
- 5:37Speaker 3: apartments that they were able to get people to rent.
- 5:40Speaker 3: But they still didn't really make any money, right, I
- 5:42Speaker 3: don't know why. I guess it just wasn't profitable for
- 5:44Speaker 3: whatever reasons. So now they go to the convention and
- 5:48Speaker 3: they have the bright idea as a marketing tool, and
- 5:52Speaker 3: they didn't really do this to make money. They did
- 5:53Speaker 3: this as a marketing tool to make cereal limited boxes
- 5:57Speaker 3: of Cereal. They have the Obama os and they capped
- 6:00Speaker 3: then McCain cereal.
- 6:01Speaker 6: So the it ties into what they do, right, We're
- 6:04Speaker 6: gonna give you the room and how are we going
- 6:07Speaker 6: to make breakfast now for you? Because the original thing
- 6:08Speaker 6: is like you'll get the room and we'll provide breakfast.
- 6:10Speaker 5: But this was more of a pr store.
- 6:12Speaker 6: Yeah no, but so he says it in some of
- 6:14Speaker 6: his speeches. He's like, look, we had to figure out
- 6:17Speaker 6: how we're going to scale breakfast. So are we going
- 6:19Speaker 6: to put eggs and ship.
- 6:21Speaker 4: It to people? No, We're gonna make cereal.
- 6:23Speaker 6: So what they did, like I think Joe Gebia does,
- 6:27Speaker 6: is he goes to like the cheapest places he can
- 6:30Speaker 6: find cereal.
- 6:31Speaker 4: So he goes to like dollar stores and buy Cereal
- 6:33Speaker 4: and they press.
- 6:34Speaker 6: Up these pictures like they go to an architect like, hey,
- 6:36Speaker 6: we need you to draw this picture. So they have
- 6:38Speaker 6: Obama and they have McCain on the Cereal box and
- 6:41Speaker 6: they make it limited.
- 6:42Speaker 5: Edition, limited edition.
- 6:44Speaker 6: Yeah, and each box has like the numbers, so if
- 6:45Speaker 6: you bought one, you know that you have four out
- 6:48Speaker 6: of five hundred, because I think they.
- 6:49Speaker 4: Only did a thousand buses eight thousand boxes each.
- 6:52Speaker 6: Each candidate got five hundred boxes, so they put like
- 6:55Speaker 6: like four out of two hundred or five out of
- 6:57Speaker 6: two hundred, so everybody had a limited.
- 7:00Speaker 4: Number on their box.
- 7:01Speaker 6: Okay, the brilliant thing is that we know boxes of
- 7:04Speaker 6: Cereal of course like four hours at the most, sometimes
- 7:07Speaker 6: a little bit more super size.
- 7:10Speaker 4: They charged foty.
- 7:10Speaker 3: Dollars for the box and they made thirty thousand dollars,
- 7:14Speaker 3: So they made thirty thousand dollars off cereal and that
- 7:18Speaker 3: was enough to propel them.
- 7:22Speaker 7: This episode is brought to you by P and C Bank.
- 7:25Speaker 7: A lot of people think podcasts about work are boring,
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- 8:05Speaker 4: Erners What's up?
- 8:06Speaker 7: You ever walk into a small business and everything just
- 8:09Speaker 7: works like the checkout is fast, the receipts are digital,
- 8:13Speaker 7: tipping is a breeze, and you're out the door before
- 8:15Speaker 7: the line even builds Odds are they're using Square. We
- 8:20Speaker 7: love supporting businesses that run on Square because it just
- 8:22Speaker 7: feels seamless. Whether it's a local coffee shop, a vendor
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- 9:12Speaker 1: An illegal alien from Guatemala charged with raping a child
- 9:16Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
- 9:20Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
- 9:24Speaker 1: filming and selling child pornography in Michigan. These are just
- 9:28Speaker 1: some of the heinous migrant criminals caught because of President
- 9:32Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
- 9:36Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
- 9:41Speaker 1: crossings are at the lowest levels ever recorded, and over
- 9:44Speaker 1: one hundred thousand illegal aliens have been arrested. If you
- 9:48Speaker 1: are here illegally, your next you will be fined nearly
- 9:51Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
- 9:56Speaker 1: never return. But if you register using our CBP home
- 9:59Speaker 1: app and leave now, you could be allowed to return legally,
- 10:03Speaker 1: do what's right. Leave now. Under President Trump America's laws,
- 10:08Speaker 1: border and families will be protected.
- 10:10Speaker 2: Sponsored by the United States Department of Homeland.
- 10:12Speaker 3: Security next year going forward, where they finally got the
- 10:17Speaker 3: business off the ground, off and running, and then they
- 10:19Speaker 3: were able to get substantial amount of money from an angel.
- 10:22Speaker 4: Investor, some seed money, some seed money.
- 10:26Speaker 3: Then in twenty eleven they get even more money from
- 10:32Speaker 3: Ashton Cusher.
- 10:33Speaker 4: Yeah legend. People don't He's made some brilliant moves.
- 10:39Speaker 5: People don't even remember him.
- 10:40Speaker 4: Pump was it pumped? Was that the show punked? I
- 10:43Speaker 4: think that's what the seventy show?
- 10:45Speaker 3: First they show punked. He had this movie called The
- 10:49Speaker 3: Butterfly Effect.
- 10:50Speaker 4: I was just yeah, that was a decent movie. And
- 10:52Speaker 4: then he married the Demi Moore.
- 10:54Speaker 5: Right, he was married to Demi.
- 10:56Speaker 4: Moore and now he's married to me La Kunis Okay.
- 10:59Speaker 3: Ashton Kushier. Not to get off topic here, but the guys.
- 11:05Speaker 5: Are genius, right, make good movies.
- 11:07Speaker 3: He's angel investor. He's a Hollywood A list celebrity who,
- 11:12Speaker 3: at the peak of his career, decides to switch his
- 11:15Speaker 3: focus and become an investor in tech companies. Some of
- 11:18Speaker 3: the companies that he invests in early Spotify, Airbnb, Uber, Twitter,
- 11:24Speaker 3: and now Ripple Yes cryptocurrency. Ripple So Aston Kusher comes
- 11:29Speaker 3: in twenty eleven, gives them money.
- 11:33Speaker 5: And then they skyrocket Skyrocket.
- 11:38Speaker 6: It gives them money to hire more staffing. They go
- 11:41Speaker 6: staffing the United States to now Europe. Officers become global Global.
- 11:47Speaker 3: Their current valuation is thirty eight billion dollars.
- 11:52Speaker 6: Wow, yeah, I think so. They're both founders, three founders.
- 12:00Speaker 6: They're each worth four billion dollars four billion. They're under
- 12:03Speaker 6: forty years old.
- 12:05Speaker 3: Yep, thirty eight billion dollar evaluation. The reason why I
- 12:08Speaker 3: like this story is because it highlights if you are
- 12:13Speaker 3: an entrepreneur, you have to do whatever you have to do.
- 12:16Speaker 3: You have to hustle at all courts. Right, So they
- 12:19Speaker 3: starting an idea to put air mattresses in their living
- 12:23Speaker 3: room and they make people breakfast.
- 12:24Speaker 6: Nobody believed in them, like they took this to Silicon
- 12:27Speaker 6: Valley and had twenty investors.
- 12:29Speaker 5: No, it's laughable if you take No.
- 12:31Speaker 3: If you think about it, right, you're putting three air
- 12:33Speaker 3: mattresses in your living room and you're gonna make people breakfast,
- 12:35Speaker 3: and you're gonna name the company Airbed and Breakfast.
- 12:39Speaker 4: They said. They laughed at they that's not a joke.
- 12:42Speaker 4: They laughed at them, and they said, this is never
- 12:43Speaker 4: gonna work. They had twenty investors.
- 12:46Speaker 6: Ten of them didn't respond to their emails, five of
- 12:48Speaker 6: them met with them, and the other five sat down
- 12:51Speaker 6: and had a tent in a conversation, all of them
- 12:53Speaker 6: said no, none of them believed in it.
- 12:56Speaker 3: And then right nobody believed in it. And then when
- 13:00Speaker 3: all else fails, they realized that they have to go
- 13:03Speaker 3: to plan B and they sell cereal.
- 13:05Speaker 6: And that's what gets the money from the seat investors.
- 13:07Speaker 6: They're like, if you can sell cereal to people at
- 13:11Speaker 6: four hours of box, you must.
- 13:13Speaker 4: Be on something.
- 13:13Speaker 3: If one hustle isn't working, you got to switch.
- 13:15Speaker 4: It, right.
- 13:16Speaker 6: He said that his mom would call him like, wait,
- 13:18Speaker 6: I thought you guys were a chain of like hotel services.
- 13:22Speaker 6: Like you're selling cereal nowt here a food company now,
- 13:24Speaker 6: So whatever we have to do.
- 13:25Speaker 5: To get this money, whatever by any means necessary.
- 13:28Speaker 4: Yeah, But it didn't.
- 13:30Speaker 6: Like I said, it didn't work at first, and they
- 13:32Speaker 6: had to go to the drawing board and one of
- 13:33Speaker 6: the things they said they met an investor, and he
- 13:36Speaker 6: was like, go meet your people, And what that really
- 13:39Speaker 6: meant was like, why isn't it working? And they found
- 13:41Speaker 6: out that when they went to some of the places
- 13:43Speaker 6: that they were listing, they realized that the people weren't
- 13:46Speaker 6: taking great pictures. It wasn't displaying the homes like they should.
- 13:49Speaker 6: So they said they went to New York and they
- 13:51Speaker 6: went to Manhattan and Brooklyn and they went to each
- 13:54Speaker 6: listing and said, look, here's the camera I want you
- 13:57Speaker 6: to use when you take these pictures. And from that
- 13:58Speaker 6: moment important too, because you.
- 14:00Speaker 3: Know when we say all right, we give you guys
- 14:02Speaker 3: these case studies. So when you go to like business school, Harvard, yeah, whatever,
- 14:07Speaker 3: top business school, Boarden, they go through case studies, right,
- 14:10Speaker 3: and it's entertaining stories, but it's more so it's education.
- 14:14Speaker 5: Right.
- 14:14Speaker 3: We're not just giving you these case studies just to
- 14:16Speaker 3: entertain you. Hopefully you can learn something from it and
- 14:19Speaker 3: implement it in your business, whether you sell T shirts,
- 14:22Speaker 3: whether you're a barber, whatever, you can learn from other
- 14:25Speaker 3: people's success stories and figure out a way how you
- 14:28Speaker 3: can copy what they have done.
- 14:31Speaker 5: Right, there's nothing wrong with it.
- 14:33Speaker 3: Becase what they have done or inspire you or gain
- 14:36Speaker 3: some type of insight. So I just want to leave
- 14:38Speaker 3: that because you know, we give a lot of these
- 14:40Speaker 3: stories and they are entertaining, but it's not just a
- 14:44Speaker 3: bedtime story, like it's for actual action, like to take action,
- 14:48Speaker 3: to leave some inspiration. So hopefully that story, to me
- 14:51Speaker 3: at very least is a very inspirational story for a
- 14:54Speaker 3: few different reasons. But I just feel that stories like
- 14:58Speaker 3: that really, you know, give you a push to keep
- 15:00Speaker 3: going because it's not going to be easy in any
- 15:03Speaker 3: type of business that you do.
- 15:04Speaker 6: Two thousand and seven, nobody believes in them. Two thousand
- 15:07Speaker 6: and sixteen, they become the official sponsor of the Summer Olympics,
- 15:12Speaker 6: like this brand that nobody believed in. So like that,
- 15:15Speaker 6: that's to tell you, like, just be persistent from thirty
- 15:17Speaker 6: believing yourself.
- 15:18Speaker 3: From broke to thirty thousand cereos to thirty eight billion
- 15:22Speaker 3: valuation in ten years.
- 15:25Speaker 4: And anybody can do that. Yes, anybody can be a host.
- 15:28Speaker 4: So it's like if you have space, like like anybody.
- 15:31Speaker 3: It's it's disruptive idea. They disrupted the hotel industry, which
- 15:36Speaker 3: was the same for one hundred years. So if you
- 15:38Speaker 3: want to find the next big thing, see what hasn't
- 15:41Speaker 3: been changed in the last hundred years and find a
- 15:44Speaker 3: way to disrupt that.
- 15:45Speaker 4: And look across, look across, like the people around you
- 15:48Speaker 4: might be able to help you.
- 15:49Speaker 5: Yep, right, that's another lesson.
- 15:51Speaker 6: He reached out to his friend who was from the
- 15:53Speaker 6: same design school. He reached out to another friend that
- 15:56Speaker 6: was a web developer. That's how they got the site up.
- 15:58Speaker 6: And then the person who gives them the seed money
- 16:01Speaker 6: actually came from came from the Rye Island School of Design.
- 16:04Speaker 6: He was like, wait, let me at least have a
- 16:06Speaker 6: meeting with these guys since they came from our school.
- 16:08Speaker 6: And that's how it starts. Man reach across.
- 16:34Speaker 1: An illegal alien from Guatemala charged with raping a child
- 16:37Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
- 16:41Speaker 1: accused of murdering a Texas man of Venezuelan charged with
- 16:46Speaker 1: filming and selling child pornography in Michigan. These are just
- 16:50Speaker 1: some of the heinous migrant criminals caught because of President
- 16:53Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
- 16:57Speaker 1: Secretary of Homeland Security under President Trump, attempted illegal border
- 17:02Speaker 1: crossings are at the lowest levels ever recorded, and over
- 17:06Speaker 1: one hundred thousand illegal aliens have been arrested. If you
- 17:09Speaker 1: are here illegally, your next you will be fine nearly
- 17:13Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
- 17:17Speaker 1: never return. But if you register using our CBP home
- 17:20Speaker 1: app and leave now, you could be allowed to return legally.
- 17:24Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
- 17:29Speaker 1: border and families.
- 17:31Speaker 2: Will be protected. Sponsored by the United States Department of
- 17:33Speaker 2: Homeland Security,