The Exchanges

Q And how'd that model work? Is it like a Costco model where you were breaking even on the two hundred million in sales, but you made money off the, uh, membership?

A No. So we, the original deal with NetJets was we were leasing time on their planes, but I wouldn't have to, we wouldn't have to enter into a long-term lease until we sold it. So we had no risk. They were carrying all the paper. So if I bought, if you and if Sam, Sean, you guys bought a hundred hours, we'd go buy a hundred hours and it was marked up. So we were just a marketing organization. They owned and operated the planes and we were leasing it. As we got big, all of a sudden, you know, we have 4000 members. We're doing a billion dollars a year. Then the model changed, and we had to start buying our airplanes. But by that time, we had, you know, significant cash, and we were able to do that. So it started off with literally, it was an incredible deal for us, and for them. Um, it was a true Um, no lose for both parties.

AI assessment note: “No. So we, the original deal with NetJets was we were leasing time”

Q early days when you were, you were trying to do the, the, let's start with the jingle company. You, um, you told me you were, you were sleeping on couches at the time, trying to make it and, uh, describe kind of what was going on at that time in your life. What was the plan and what were you going through and how did you come out of that?

A Well, I grew up in New York in the eighties when rap and hip hop was starting to emerge in a bigger way. And that it, that was the intersection of, of that happening and me going to college. So I was really into music early on. And while all of my friends in college were writing resumes and going on job interviews, I was like, I'm making a rap record. Like I'm, why would I waste my time making a resume? I want to make an album. So it was like kind of that's the direction I wanted to go in. Uh, right away. I ended up signing with a record company called Delicious Vinyl. Everybody passed on me, and this one little record company gave me a shot. And I didn't have, like, I wasn't super connected. I didn't have, like, a lawyer. I, no, I did it all. I shopped it myself. But I ended up getting dropped from the label shortly after. And I got into writing, um, jingles or, uh, for companies and theme songs for sports teams. And that was kind of my first entree into, you know, I pivoted. It didn't work out for me in the music business, but I still loved music. So I stayed in there and I started doing jingles and, um, Yeah, that's how I kind of started out early on.

AI assessment note: “I ended up getting dropped from the label shortly after. And I got into writing”

Q Yeah. We're about to have Migos Pickles. Um, alright, tell me, tell me about this idea. You, you gave me three words. I don't know what the idea is, but you said, ready-made eight-ounce drinks. What, what you got in mind?

A Yeah. So, I mean, I, I've been accumulating ideas in my, in my top draw for 35 years. Um, I love starting themes, Sean, you know, but, um, yeah, I mean, I don't, I don't mind. By the way, if you guys want to run, anyone wants to run with this, you can. I'll take a one penny. Royalty, I'll give it to charity. Um, no, I think, like, I go back to, Five Hour Energy. The brilliance of Five Hour Energy is they took a, you know, 12 ounce energy drink, they shrugged it down to two and a half ounces, right? That's what Five Hour Energy was. And why did it work? They, they only, I believe, I believe they only have predominantly sold stores that would put it on the countertop when they started out. So like, it wasn't buried at GNC on the bottom shelf, and it was like on the countertop at checkout impulse buy. They were selling 10,000,002 and a half bottle, ounce bottles every week. Ten million! When I look at, when you look around retail, At the counter, at checkout of retail, the countertop is incredibly crowded. At, you go to Whole Foods, there's gum, there's mints, there's this, there's that, there's chocolates. Everywhere you go, gas stations, there's lottery tickets, and blah, blah, blah, blah. The only place that I found, like, where there's open area are liquor stores. If you go into a liquor store, you don't see the, the, the, the, the, you know, the stands and the crowded space a…

AI assessment note: “I was gonna call them quickies. Um, to have, like, ready-made shots.”

Q And why, why is that so powerful, the will versus can?

A Well, because it's, it really puts the pressure, you know, Billie Jean King in a book, Pressure's a Privilege. And it is. Like, entrepreneur, we play for pressure. Sean, like, as entrepreneurs, that's what we want, man. And, um, you know, I recently did a race called Ultraman. It's a 6.2 mile open water swim, a 265 mile bike, and a 52.4 mile run. And I thought to myself before the race, that exact thing, like, I think I can do it. But I'm never gonna know unless I sign up for the race, put myself in a position Where something incredible can happen or not, but I gotta put myself in that situation. And now it's up to me, like, will I get it done? You know, will, what am I willing to do? Am I willing to suffer for that one day for, to have the next three decades have that in my memory bank and have it on my resume? And, and I, and I am will, and I am willing to do that. And, and I did.

AI assessment note: “Well, because it's, it really puts the pressure”

Q to most, but like. What's your strategy been now that you have some chips to play with? Do you, do you make big financial bets? Are you saying, no, no, I'm going to add value strategically. Do you start things from scratch? What do you, what do you like to do with the chips that as you accumulate them? How do you, how have you used that to your advantage?

A Well, I've, I've realized that I've got, as I've gotten older, that more isn't better, better's better. And I really don't make a lot of bets. I have four kids. Um, what I'm most proud of, Sean, in my journey at 55 is that I've been, I've, I've exited five businesses, but I've been able to keep, build a family, keep my health, you know, be a really good son to my parents. Um, I have great friends, so, I really aren't, I'm not, uh, and I'm not using Elon as an example. You brought him up, not me. But I'm not trying to roll everything in, or, um, I'm really proud of what I've been able to do, and I'm really proud of the life that I built. So, I really don't, I really say no to most, I have this thing. At this point in my life, if it's high aggravation for high reward, I'm not doing it. If it's, and that goes for anything, money, friends, I don't want high aggravating friends. I'm on friend reduction right now. I'm on friend reduction, man. I want low aggravation.

AI assessment note: “if it's high aggravation for high reward, I'm not doing it.”

Q So you walk in, you walk into NetJets, and you're like, hey, um, I'm Jesse, former rapper, jingle-preneur, and I would like for you to give me your most valuable assets, your planes, for this new membership program. How did you convince them to do that?

A Well, at first we didn't. They kicked us out of the office in the first meeting after about 12 minutes. And, um, backing that up, the bigger question is how we even get in the room? Forget like what happened at the meeting. How in the world did a multi-billion dollar company let two kids that didn't break a thousand on their SATs into a room to pitch them the idea? A year before that, I was a yes guy my whole life. I, I, I was, I, I've, I've kind of, and I still try to pride myself when people ask me for things to deliver if I can, but never ask for anything in return. You know, like, I'm not like, oh, Stan, I'll do this for you, Sean, but like, can you do this for, like, I don't know, that's not the M.O. I got a call a year before that from someone that said that their daughter, this is a true story, and it's the craziest story ever. This guy was having a, his daughter was having a Sweet 16, and Chris, um, a famous singer was performing in his hometown. His daughter wanted to bring his Sweet 16 to the event. The guy says, I know you know the manager, can you help this guy get some tickets and do anything special? Turns out, I get the guy's daughter as a backup singer for one song with the mic off. Everyone in school the next day is, she's like the hero of this, like, what happened? Oh my God, they're freaking out. The guy calls me up, he goes, I don't know who you are. I don't…

AI assessment note: “Well, at first we didn't. They kicked us out of the office”