Key Moments
3 weird businesses doing $10M, $20M, $30M
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Key Moments
A real estate magazine for agents, a campground acquisition business, and an app mirroring politician trades are each generating tens of millions in revenue, proving unconventional business models can be highly profitable.
Key Insights
Haven Lifestyles generates $10 million in revenue by publishing 40 regional real estate magazines that serve as 'lookbooks' for agents to promote listings and attract new clients.
Team Outsider acquires and revitalizes family-owned campgrounds, currently owning 16 properties with 4,000 sites generating $20 million in annual revenue, aiming to scale by professionalizing operations.
Autopilot, a tech company, manages $1.8 billion in assets and generates $30 million in revenue by allowing users to copy trades from politicians and hedge funds, with top performers earning $1-2 million annually.
Haven Lifestyles achieves approximately $2.5 million in profit on $10 million in revenue, with a growth target to double profits within 11 months, focusing on improving agent retention.
Team Outsider raised $60 million to acquire 16 campgrounds, with their portfolio now valued at over $100 million, and they manage operations in-house to maintain company culture and facilitate scaling.
Autopilot's 'pilots' (portfolio managers) can earn $1-2 million annually from subscription fees, with top performers like Peter Wolf managing over $220 million in assets on the platform.
Real estate advertising through niche magazines
Alex Daniels, founder of Haven Lifestyles, generates $10 million in revenue by publishing 40 regional magazines focused on real estate advertising. These publications act as high-quality 'lookbooks' showcasing property listings, which real estate agents pay to feature. The magazines target specific zip codes and property values, being mailed directly to potential homebuyers and sellers to either promote existing listings or encourage agents to use their services. Originally a bill collector, Daniels transitioned into this business after his college roommate had success with a small local publication. The model has scaled to cover the US and Canada, printing 30 different magazines monthly, and is supported by a 20-person team, primarily based in the Philippines for design work. A significant portion of their reach is online, driving traffic to their platform. Despite being described as 'junk mail' by some, the approach has proven effective, with 10 million in revenue and approximately $2.5 million in profit. Daniels aims to double profits within 11 months, focusing on increasing client retention among the 10,000+ agents they work with annually.
Acquiring and scaling campgrounds
Josh Weissenstein, co-founder of Team Outsider, shared how his company acquires family-owned campgrounds from retiring owners, generating $20 million in revenue with 16 properties. The business model hinges on acquiring existing, cash-flowing businesses, often from second or third-generation owners looking to exit. Team Outsider revitalizes these campgrounds by introducing professionalized systems, including digital marketing, improved websites, and reservation systems, which often lacked in the original mom-and-pop operations. They operate under the principle that as more life moves online, businesses that bring people together in the real world will become more valuable. The company has raised $60 million and their portfolio is valued at over $100 million. Weissenstein emphasizes that they manage their properties in-house, believing that culture cannot be outsourced and that competent third-party managers are scarce for scaling operations. They have successfully implemented a strategy of acquiring a property, increasing its Net Operating Income (NOI) through operational improvements, refinancing to pull out capital, and using that capital to acquire the next property. Their focus is on building a 'community-focused' experience, attracting a mix of RVers, tent campers, and cabin renters, often with seasonal guests forming a loyal base.
The rise of stock-picking apps and 'politician trackers'
Brian Kim, founder of Autopilot, discussed his company's explosive growth, managing $1.8 billion in assets and generating $30 million in annual revenue for the tech platform started three years ago. Autopilot's primary draw is its 'Nancy Pelosi stock tracker,' which allows users to mirror trades made by politicians and hedge funds by analyzing publicly available data and SEC filings. Kim highlighted that Nancy Pelosi's portfolio has reportedly outperformed the S&P 500 by over 240% in the last three years. The platform solves the 'chicken and egg' problem of market marketplaces by manufacturing the supply side—curating notable investors and providing their track records. Users can then choose to follow these 'pilots,' paying a subscription fee ranging from $100 to $500 annually. Top performers on the platform can earn $1-2 million annually, with some managing hundreds of millions in assets. Autopilot has raised $16 million, with valuations floating between $300-400 million. Kim envisions Autopilot becoming the world's largest asset manager for retail investors, akin to BlackRock's Aladdin platform for institutions, by democratizing access to sophisticated portfolio strategies.
Scaling challenges and growth strategies
Alex Daniels of Haven Lifestyles faces the challenge of scaling from $10 million to $100 million in revenue, with a current profit margin of around 25%. His primary strategy to double profits in the next 11 months is to improve client retention among the existing 10,000+ agents, arguing that they have the inventory and client base already secured. He acknowledges he hasn't personally spoken to top clients, and the hosts suggest reaching out to top-tier clients to understand their needs better. Shaan Puri notes that Daniels is 'too happy,' implying a lack of aggressive ambition, which contrasts with the hosts' own drive for growth. Daniels is considering expanding into other verticals like home services and potentially international markets, but is also happy with his current business model.
Operational complexity and value creation in campgrounds
Josh Weissenstein of Team Outsider outlined the advantages of investing in campgrounds, citing strong yields, operational complexity as an opportunity for value creation, and attractive depreciation characteristics similar to manufactured housing. These factors make campgrounds appealing to tax-sensitive investors. Despite the demanding workload, Weissenstein expressed a desire to continue in the business long-term, seeing a growing market for real-world experiences. He also touched on the challenges of managing a distributed workforce of hourly employees, drawing parallels to the restaurant industry and referencing insights from founders of Chipotle and The Story of Soul. Common issues include finding genuinely hospitable staff and preventing outlier problems like theft. He believes incentivizing frontline workers to care about customers is crucial for success and suggests studying companies that have effectively solved this, possibly by hiring former employees or consultants from those companies.
Autopilot's unique revenue model and growth trajectory
Brian Kim of Autopilot explained his company's revenue model, which focuses on subscription fees from users who follow specific 'pilots' or portfolios, rather than a percentage of assets under management directly from the user. This model allows top creators to earn significant income. Kim stated their current Autopilot AR (annual recurring revenue) is $22 million, with gross merchandise volume (GMV) revenue at $30 million. He believes this direct revenue model, driven by perceived alpha generation from their select pilots, allows them to charge higher fees (3-4% average on user portfolios) compared to low-fee index funds or robo-advisors. Autopilot is also developing its own portfolios to capture 100% of the revenue from those specific offerings. With a projected growth rate of 250%, they aim to reach $100 million in revenue by March of the following year. Kim is also making aggressive hires, including software engineers and product people, and is willing to dismiss underperformers quickly, believing that AI can make individuals significantly more effective.
The role of marketing and 'stunts' for growth
Brian Kim acknowledged that Autopilot's rapid growth, especially in customer acquisition, was heavily reliant on marketing, including viral 'stunts' like the Nancy Pelosi tracker and a $450,000 sponsorship at a UFC event featuring a lookalike Nancy Pelosi. While the latter didn't yield direct results due to the absence of Donald Trump, Kim sees value in such 'earned attention' stunts. He is actively seeking the next marketing initiative, emphasizing creativity and boldness. This approach aligns with the platform's goal of identifying and attracting both established and undiscovered investment talent, likening it to 'picking the pickers' or being the 'American Idol' for finance influencers.
Future of investing and talent acquisition
Brian Kim of Autopilot expressed his belief that a portion of every investor's net worth (10-20%) should be allocated to high-risk, high-reward strategies, and Autopilot aims to provide access to proven stock pickers for this segment. He also shared his struggles with hiring, particularly with senior-level candidates who can be adept at 'BS.' His advice for hiring includes clearly defining roles, utilizing an 'outsider hiring committee' to gain different perspectives, and focusing on two pools of talent: those who have previously solved similar problems and 'diamonds in the rough' with high potential. Sam Parr added that founders should dedicate significant time (over 30%) to recruiting during scaling phases. Autopilot currently dedicates about 20% of its time to recruiting and sees AI as a key enabler for its employees' effectiveness and the company's overall growth. Looking ahead, Autopilot aims to replicate the success of institutional portfolio management platforms for retail investors.
Mentioned in This Episode
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Common Questions
The video features three entrepreneurs with unique business models: one who runs a magazine advertising business targeting real estate agents, another who acquires and manages campgrounds, and a third who developed a tech platform allowing users to automatically copy trades from successful investors.
Topics
Mentioned in this video
An investor who backed Leopold's fund.
Author of 'Unreasonable Hospitality,' whose stories about exceptional customer service were shared as examples for scaling culture.
Mentioned as someone who took 10-15 years to reach $1 billion in assets under management, contrasting with Autopilot's rapid growth.
Her stock trades were tracked by Autopilot, leading to significant outperformance compared to the S&P 500.
A successful trader on the Autopilot platform, with a 200% return and $220 million following his model portfolio.
Founder of Bridgewater Associates, mentioned as taking a long time to reach $1 billion in AUM, and also being interviewed on the podcast.
This person is not specifically mentioned in the transcript, only 'Cramer' in the context of the 'inverse Cramer effect.'
Was expected to attend a UFC event where Autopilot had a marketing stunt, but did not show up.
Mentioned as an example of someone who embodies the 'root for everybody' philosophy. Clarified to be 'Jesse Hitler' in transcript, but likely referring to Jesse Tyler Ferguson.
Mentioned as a comparable figure to Leopold, with the question of whether he is 'cool.'
Mentioned as the former employer of Ben, where he worked in credit card collections.
The name of Ben's real estate advertising magazine business.
A neighborhood publication company mentioned as an example of similar business models.
Josh's company that acquires family-owned campgrounds.
A campground owned by Team Outsider located near New York City.
A brokerage account that users can connect to Autopilot to manage their trades.
A well-known campground franchise, likened to the 'McDonald's of Campgrounds'. Team Outsider is a franchisee in certain markets.
Used as an example of a company that could use BlackRock's Aladdin platform to hedge investments.
Acquired Postcard Cabins, a competitor to Team Outsider's community-focused campground model.
Mentioned as an example of a stock that experienced significant growth, which younger people might find obvious.
Used as an example of a company that successfully built a culture for frontline workers and incentivized retention.
Brian's former employer, from which a successful trader named Leopold departed to start his own fund.
A company whose SSDs Leopold invested in as a bottleneck in AI infrastructure, alongside GPUs.
Leopold's friend, who is the chief of staff there, has access to information flow.
Used as an example of employees who might use Autopilot to hedge their investments in tech.
Mentioned as an example of a stock that experienced significant growth, which younger people might find obvious.
Sponsored the podcast by providing a free database of unsexy business ideas discussed on the show.
Brian's company that manages $1.8 billion in assets and generates $30 million in revenue annually, enabling users to copy trades from top investors.
A financial media company with significant subscription revenue and a fund that invests in its own stock picks.
An AI tool used by Autopilot to manage their sales process, which Brian praised highly.
BlackRock's platform for institutional investors to manage portfolios and hedge bets, generating significant revenue.
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