Greg Isenberg - Dreadful businesses

We’re all guilty of this.

We look at an industry, shake our heads and declare it "dreadful" - a lost cause, doomed to fail, a hopeless cause, a black hole where time, effort and money go to die.

But some of these “dreadful” businesses that most people try to avoid are the ones I’m honestly most excited about right now.

The media business is a prime example of this.

I was reminded of it the other day.

I met with a founder who’s bootstrapped an impressive local blog/newsletter media business that reaches millions of people per year and makes $5M/year of revenue.

But, he was in rough shape. A few recent changes in Instagram’s algorithm and his traffic has plummeted. And ad dollars have been harder to get since the good old ZIRP days. I felt for him.

So, he wanted me to invest in his business and is raising some VC money to shake things up.

And as he was explaining all this, he uttered the fatal words: "media is a dreadful business."

That's when I had to stop him in his tracks.

Here’s my point of view:

If you build a media business, you own a rare resource: people's attention.

Which attention you own is "your business." Monetize the right high-value audience, and you've got a beautiful business.

And how you monetize that attention is also "your business." Monetize correctly through subscriptions, paid community instead of ad dollars, and suddenly you've got a high-margin, high-impact model.

The status quo of media business is to find advertisers and optimize around impressions.

But the most interesting way to monetize media is to build your own internet products (marketplaces, SaaS, communities) and optimize around monthly recurring revenue.

The reality is the most dreadful businesses just need to be reoriented to be beautiful ones. New business model, new distribution channel, attach a creator to it.

The truth is, there are no dreadful businesses - only dreadful “status quo” mindsets.

When you approach an industry with curiosity, creativity, and an unwavering belief that there's beauty to be found, even in the most seemingly bleak of landscapes, that's when the magic happens.

After all, some of the most beloved, profitable businesses in the world started out being called "dreadful." And these days, we call them game-changers.

Forward this to a friend who might enjoy this post. It's free to forward. Tell them to subscribe to this newsletter here and to subscribe to my YouTube here for free startup ideas (I also read every comment on YouTube).

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Next up, bookmarks I saved this week worth reading

#1

Jeff Sheldon @ugmonk A lesson in branding @getgraza 😍 6:5 PM • Apr 7, 2024 35 Retweets 947 Likes Read 37 replies

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Standing out. Easier said than done. But increasingly more valuable. If you ain't standing out, you're invisible.

Note: I use Dispatch to stand out (hire 'em here).

#2

Brandon Moore @bk_moore Less scrolling, more strolling. 8:54 PM • Apr 7, 2024 0 Retweets 13 Likes Read 2 replies

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This hits. Easy to get in a scrolling trap and you'll never stroll enough. My best ideas come to when I'm on a stroll, in a sauna/steam or shower.

#3

Zach 🏴 @zachpogrob My favorite people are relentlessly intense in work, and completely relaxed in life Barbarian killer energy with making money Happy teddy bear energy with having fun Rare combination but it's obvious when you see it 7:36 PM • Apr 10, 2024 9 Retweets 75 Likes Read 3 replies

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I love this. The only thing I'd add is it's not just about making money, especially as you get older, the impact is what you love chasing.

#4

Justin Gordon @justingordon212 The Failure Resume of Tim Ferriss (The point? Keep going.) 10:34 PM • Apr 9, 2024 4 Retweets 52 Likes Read 11 replies

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The 4-Hour Workweek was turned down by 26 out of 27 publishers. And even then, industry experts told Tim Ferriss that it wouldn't be a mainstream success. The book went on to sell millions to become a business bible. It was on the NYTimes best-selling list for literally 5 years.

This image is a reminder that even legends like Tim faced a ton of rejection.

No rejection, no progress.

Before I head off... some resources to help you grow:

1. For the entrepreneurs who want to move faster: if you're serious about building your business, join the private membership at Community Empire. Browse the website and see if it's for you. This is what you need to accelerate your business or finally start it. The accountability and the playbooks will do wonders. Why wait?
2. For people looking to grow with design & brand: If you're looking for a design agency partner, for beautiful websites, social assets, brands, book a call with them while you can.
3. For people who want to learn how to grow via SEO: Free course on how to 10x your organic growth using AI-powered SEO and become a "boring marketer" here.
4. For the people who don't want to learn about AI-assisted SEO and just want results. Book a free call here with BoringMarketing.com and start ramping up your SEO. SEO powered by AI has been a game changer for our portfolio.

Thank you for reading Greg's Letter. I hope you found it valuable. Forward to a friend if you did or share on social to get others thinking.

I'll keep writing if you keep reading. I read every reply if you care to reply :). You might get an answer back.

Until next week.

Be well,

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