How a Meme Became a $600K Yearly Business

[00:01] making like $10,000 a month shipping potatoes to people this [ __ ] here look at this guys and then we take a pen and we write it on this potato that's right this g210 hands down has the best quality on a potato

[00:15] that there is Alex Craig started potato parcel. un grad says the idea came to him a few months ago I would say the two things that hold everybody back in life it's it's fear and it's doubt the fear of failure and the fear of was in your

[00:30] time and the doubt that you can actually achieve something big on a huge scale so now his computer is filling up with users ordering $10 potatoes with a custom message sent anonymously to whoever they want and what's really cool

[00:42] about this is that it takes me about 30 seconds to write on a potato it's a simple idea and it's making money Greg says he's clearing $10,000 a month since potato parcel. comom launched in May but at just age 24 Craig says it's kind of

[00:58] turned into something better than profit we've sent thousands of potatoes to in some sort of weird way we've had an impact on somebody's life even just for and they say what the hell is this that's a potato and suddenly somebody in

[01:13] Dallas Texas can have that impact on somebody's life yeah Dallas Texas baby of course of course it's in Dallas you guys aren't ready for this business you can buy a Thanksgiving potato bundle for 30 bucks now you can have a potato you

[01:27] can upload your face on a potato no in shot how does he do it that's insane is this cheick from the boys what the

[01:44] [ __ ] is this sharks my name is Alex Craig and this sharks my name is Alex Craig and I'm RI our company is seeking $50,000 in exchange for 10% equity in our business 50k for 10 is not bad sharks our company

[02:00] is potato parcel and we mail potatoes and that's it dude they're asking for they're asking for 10% at 50,000 10% Equity $50,000 in an Ecom business the whole reason why the Sharks didn't take this

[02:15] seriously is cuz this was in 2008 right that's a crazy deal for an Ecom business actually converting that's insane 10% equity for 50,000 you take that marketing bro marketing is the barrier of entry for everything you like like

[02:29] new alert you can literally do any business these days like except it build Rockets like um but like pretty much any business is duplicatable but marketing and and uh existing user base is your mode it comes in a bubbled envelope and

[02:43] a special packaging that we're going to include right here for does the total dollars first of all valuations are [ __ ] like never pay attention to statistic that like one of the one of the saddest things about business is

[02:56] for how a business does so like throw that out of your head head but but even still let's say it is worth half a million do would you pay half a million doar to have a business that passively generates $10,000 a month off of for

[03:09] basically forever um off of only the price of writing a a message on a potato for 30 seconds [ __ ] yeah like the margins are [ __ ] crazy on that yeah that that business is easily worth that kind of money mine's a very handsome

[03:21] proprietary about this they put nothing proprietary on this potato how did you come up with this yeah I was on Reddit and the top post of the day was a potato with stamps on it and I thought he's literally just

[03:36] posting on Reddit and comes up with this idea 1.5 million people saw a potato with stamps on it and I just saw an opportunity did anybody buy the potato mask today we've sold over 12,000 potatoes and this dude is old money man

[03:50] doesn't understand 12,000 potatoes is absolutely a use case for a successful business I would have been like oh so how much revenue have you guys generated so two

[04:05] $115,000 in sales dude how do you not invest in this 10 these guys turn this down I'm I'm going to they've done $25,000 they've sold 12,000 potatoes and they're asking for 10% at 50 these guys are so dumb if they don't invest in this

[04:21] well I typically don't like to pay myself so you're reinvesting your profits huh into what inventory inventory hiring mind they don't invest in this do you have day jobs so I work at a mobile app agency in Dallas

[04:34] Texas I do this fulltime yes so when I started the website my goal was to go viral so once we hit the peak of our viral viral Riot actually purchased the business from Alex for $42,000 but there's no equity in it for

[04:49] you you own actually there is when I sign that's true yeah this guy's getting the guy got like got he's like why do you walk around you got you got 42k for fleeced on the right that guy got fle super hard man by this dude this dude

[05:01] business idea and making all the money of 100% Equity bought him out 100% here pitching Shark Tank what the also these guys understand marketing this is this shark tank is a is a lesson in marketing I would love if you if you

[05:15] this link them in stream submissions I would always watch these because they're such a good analysis of what good marketing is if we got on the show he would be entitled to $1 per potato for the first 60 days that's still all $1

[05:29] per potato for the first 60 days is still all if you own 100% of the equity Jesus ripped off my royalty deal I did out that's not your deal dude Ro been

[05:41] out that's not your deal dude Ro been around since our products are 70 to 78% around since our products are 70 to 78% margin hear I'm surprised it's that low it's 70 to 75% margin so like a t-shirt margin on average is going to be like 20

[05:53] to 30% if you have if you sell those like Supreme t-shirts like the like not sell like high quality t-shirts like like $50 $60 you can get away with it your margins are noral like 50 60% and he's making money he's making 70 80%

[06:07] be on a pan all of Shark Tank if you asked yeah I could I the funny thing too is I have the VC potentially to take the deals too I could do it wasn't seima Leu deals too I could do it wasn't seima Leu simu that badass mother from uh um from

[06:19] that Marvel movie on there these are just empty calories so for those Reasons I'm out idiot stupid mother what did he say bro I don't understand these Shark Tank people like like they literally saw they would make their

[06:32] $50,000 they would objectively make their Roi back in 3 months like like like that that business generates the business is generating Revenue right now that's the only way they would not invest in this because like they think

[06:47] it's a fad they don't understand like how people would buy this they don't in like traditional business they're in like Telecom and [ __ ] like they they can't understand why this works it's too early it's it's it's too early it's like

[07:00] like 2008 is too early to understand Ecom you have to really really be ahead think I understood Ecom in 2008 I'm going to make you an offer let the Sharks learn from Mr Wonderful I'm going to give you the

[07:13] $50,000 and I'm going to take the 10% but I'm going to join Alex on his royalty journey and his royalty is getting cut in half because I'm getting half of his royalty wow so after he's got his 50 cents for 60 days I continue

[07:26] to get a dollar until I've Got Back 50,000 then I'm going to hire you to go work in one of my real companies yeah that's a really smart offer on his point that's a really smart offer on his point it's it's it's 100% a scam but that is

[07:40] really smart so he did the so he wants the equity and then he wants a dollar up to $150,000 so he guarantees to 3x's investment on the existing sales so he's

[07:52] not only SEC he's securing himself on both ends no on on the back end if the business does do well he has 10% Equity if the business if the business doesn't do well he makes money off the revenue until it falls off that's a good offer I

[08:05] talking about Cuban just hard out Cuban's Cuban's so traditional Sports guy [ __ ] like like OG like doesn't doesn't get it yeah this is a good deal very smart you don't take this deal you don't take this deal 100% cuz this thing

[08:21] is going to go to zero at some point even I know that so do you forget the even I know that so do you forget the valuation you gave Alex 42,000 I'll give you the 50,000 for 25% of the business no

[08:33] no shot holy $50,000 for 25% of the business they're making $50,000 on 70% margins they make that $50,000 on 70% margins they make that for themselves in five months that my

[08:47] this before in my life I bet they take no deal and I and and my guess is that these guys are so good at marketing they're literally here just to talk to Shark Tank get more or press for potato parcel and then [ __ ] off that's my guess

[09:02] I I I I bet they know they're smart enough to know that they're asking for asking for $50,000 for 10% of their company they're literally just here to be on TV because they know that they make $50,000 back in

[09:18] three months so ask yourself this right in a business that is making 70 to 80% margins off writing potatoes on like writing on potatoes what are they going are they going to run more ads are they going to ramp their business like no

[09:31] shot so there's no [ __ ] way they're going to turn it all down they're going just got aing ton of earned media that's my guess I'll be shocked if they take something maybe we expand into cucumbers you are soing nuts who knows these

[09:45] people have no intention of taking this deal and the crazy thing is you guys they're fighting over you which is insane giving us $50,000 for 25% that's value valuing us at $200,000 and we just did2

[09:59] ,000 in 13 months that doesn't seem I'd like 175% for you Robert and what about for Kevin so I would like to be loyal to Alex for helping getting us

[10:11] to this point i' like to still give him a dollar and you a dollar after 150 I I'd still own 10% right yeah 17.5 is so crazy maybe these guys are idiots I like they're idiots I'd like to hear from you guys if you don't mind what you're what

[10:28] value you would bring to us they all laugh but they can't do [ __ ] can add value to this business it's already 70 80% margins and like it's a them have any social following or any

[10:42] them can do it I will I will help you every waking moment I have I'm going to be thinking about this substantial answers cuz they can't do [ __ ] for this business I think the most

[10:58] sense uh would be to make a deal with Kevin that's such a bad deal so they ended on 17.5 I'm going to research if this actually went through they ended up they ended on cuz this says oh no no no so he 10% Equity $1 up to $150,000

[11:11] $50,000 investment okay let's look this up I I'm so interested uh was the company potato parcel successfully invested in by Shark Tank investor Kevin

[11:24] what was the result of this investment Kevin offered 50% for 10% equity in the company plus $1 royalty potatoes up to the recoup to 150,000 the investment deal proved to be successful for both parties so the deal with Kevin o

[11:38] actually closed successfully holy it actually closed successfully so Robert software was 50,000 for 25% equity which was insane smart enough to actually stand to actually stand on business and be like

[11:54] made the valuation that you're offering us at in a year sh after airing the company made headlines in early 2017 NBA star Dirk uh Nowitzki received Anonymous potatoes congratulating him on his 30,000 career points by 2018 the company

[12:09] had expanded Beyond its original concept offering things like birthday glitter bombs and big head cutouts according to our potato parcel updated research the growth translate into $700,000 Revenue additionally the Shark Tank greatest of

[12:21] alltime special highlighted potato parcel in February 2020 is the greatest writing potato parcel is still going strong with annual re Vue of $600 to $700,000 annual revenue this guy is making 700 G's off of potatoes Kevin

[12:38] this I can't believe they accepted this deal as of 2021 potato parcel reached a projected value of 1 million Kevin a said he's made a ton of money from the said he's made a ton of money from the deal holy Kevin oir put $50,000 into

[12:53] this oh I can't believe how stupid Cuban was in this the Cuban just Cuban is the internet guy Cubans that I connect wires together and make networks I was the first person to build a website guy you didn't see this you didn't see this you

[13:06] got absolutely trounced by Mr Wonderful bro holy $50,000 investment for 10% equity in a company that's doing close to a mill a year actually [ __ ] crazy to a mill a year actually [ __ ] crazy Jesus Christ and he made 150k back

[13:21] easily in like less than a year so he got 150k on top of it VC is busted dude what I've never had a VC deal like this that's been this successful that's been this successful me oh my God actually crazy like I want

[13:34] to know what Kevin even contributed to this business like what did he even do the investment allowed potato parcel to expand its product line behind I guess expand to like birthday bundles and custom cutouts and [ __ ] and that was

[13:46] like what the $50,000 did what an interesting I don't know I I can't about this I found this on Twitter see this is good [ __ ] this is good ass good business stuff the contestants pay a percentage of equity a production

[13:59] company that runs Shark Tank are you are you serious what percentage most of his but you've got to understand how how it works how how VC works like you're expecting to fail you know anywhere

[14:12] expecting to fail you know anywhere between 9 to 8 8 to nine of like your deals are going to do [ __ ] all and then potato parcel is going to generate you like this is $700,000 revenue on on 10% that Kevin's not doing for so the whole

[14:26] idea of venture capital and like Iowa was never successful at this like I I company that like really took off well if you actually if you include my actual physical asset Investments I have like um the which I don't really talk

[14:41] but like as far as like digital businesses or Ecom business or stuff it's hard to do this but the idea is that you fail at like 8 to nine of your

[14:53] businesses and then you succeed in one investment like this and it pays for the like what the whole world of VC is based on