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[00:00:08]

In America, we're capitalist you the fuck are we kidding, we're colonialists. Today on the property show, we speak to the CEO and founder of Charity Water, Scott Harrison. Take your questions and office hours and as we always do with an algebra of happiness moment.

[00:00:35]

I think all of us are trying to take perspective from this crisis perspective as a photographic term, it means as you zoom out, you see the bigger picture. Supposedly people, when they see the earth from space, feel more of a comedy, more of humanity, become very spiritual. I also think that a certain amount of perspective happens as you get towards the end or specifically near death. My father is near death. He's not sick, but he's almost 90 and is probably playing the back nine, if you will.

[00:01:02]

And I do get a great deal of perspective from him. He mostly is just hanging out in his seniors home, abusing Xanax and watching reruns of Maple Leafs games. So he's an intensely intelligent individual who's fearless and high in some. He is my Yoda.

[00:01:18]

You must learn what you have to do. And the other night I asked him as I was screaming, how are the Leafs going to do next season? I said, do you have any takeaways on America? And he said he said that America is a terrible place to be stupid. Now, what did he mean by that? The reason he came here and he took a lot of risk to get here, he wanted to be in a place where there were winners and losers.

[00:01:42]

And the cruel truth of capitalism is you can't reward the winners without punishing the losers. And we've had an immigrant gene here in the US where, if you're lucky, work hard, take risks, you get bigger upside. But also if you're unlucky or make take stupid risks, there's some downside. But however, capitalism is no longer capitalism. United States. Why we've decided that our modern day capitalism in America is that our objective is to flatten the risk curve for people who are already rich by borrowing from future generations with debt fueled bailouts for companies, we have consciously decided to reduce the downside for the wealthy, thereby limiting the upside for future generations.

[00:02:22]

These rescue packages, I get it. We want to flatten the curve of unemployment. We're hoping this is a trope. We want to save the economy. But should we really be bailing out United Airlines who have spent ninety six percent of free cash flow so they can buy back their stock, thereby inflating their shares, thereby increasing the compensation of their CEO, who, along with the CEOs of Delta and Carnival Cruises, have recognized about one hundred and fifty million dollars in cash.

[00:02:47]

Shouldn't we be rewarding the companies that have a cash hoard Berkshire Hathaway's that board posts that have put away a bunch of money? Shouldn't the companies that wanted to inflate their own stock prices and now got caught without bathing suit, shouldn't they pay the price? Also, CEOs and the shareholder class are trying to conflate equity destruction with job destruction. I know this firsthand is not true. In 1999, my company Red Envelope was about to go public. I was looking at jets.

[00:03:16]

By March of 2000, I was no longer the case. By 2008, a longshoreman strike left our Christmas merchandise stranded 60 miles off the coast of Long Beach. The credit crisis hit and boom. Seven weeks later, we were Chapter 11. All the equity was wiped out and yours truly has been flying JetBlue ever since. Never got that jet.

[00:03:33]

But let's be honest, I'm an interesting guy. But had I been able to get that sexy beast, that challenger three hundred with Rockwell Proline twenty one avionics, I'd be fucking fascinating. But instead, I'm just interesting. And that's the way capitalism works.

[00:03:50]

The bailout packages should protect people, not businesses.

[00:03:54]

Letting firms fail and share prices fall to their market level also provide younger generations with the same opportunities that we, my generation Gen X and boomers were given, for example, a chance to buy Amazon at 50 versus 100 times earnings and maybe, who knows, Brooklyn real estate at three hundred or 500 bucks a square foot vs. fifteen hundred dollars a square foot. Capitalism is now a callsign for protecting the wealthiest generation in history, the shareholder class better known as baby boomers.

[00:04:22]

The terrible thing about crises is they always happen. The wonderful thing is they always end as we fight to bring this crisis to an end. Let's remember, face capitalism and foster a future generation of leaders and firms that are soldiers, not hoarders. Yes, America is a terrible place to be stupid. It's going to be a worse place if we replace capitalism with cronyism. In 1999, I was exceptionally narcissistic, ego driven and sick and fed up of San Francisco and being on this hamster wheel of e-commerce startups and decided to change my life, resigned from the board of that envelope.

[00:05:12]

The company had started resigned from the board of profit. The other company I had started told my wife I wanted a divorce, no fault of hers, and moved to New York and joined the faculty at NYU. Totally hit the reset button. And I used to go out. I basically just left my loft for food, sex and occasionally socialization like a dog. I was basically a caveman. And the person or one of the individuals I met whose specialty was getting guys like me tables at the hottest night spots in the world where wealthy people and the women who love them congregate was a guy named Scott Harrison, who was a club promoter.

[00:05:49]

And I got to know Scott, very nice guy. And a few years later, Scott was in putit last day with a bunch of wealthy people partying on the ocean and had, for lack of a better term, some sort of spiritual awakening. We thought it was a breakdown as all of a sudden Scott disappeared and we he surfaced taking photographs on a mercy ship off the coast, off the Ivory Coast and decided he was going to change his life, dramatically returned to his Christian roots, returned to the US, slept on a bunch of couches and raised five thousand dollars, returned to Africa, built one well, came back, raised thirty thousand dollars, went back, built six wells.

[00:06:27]

Anyways, a half a billion dollars later, Scott has brought save potable water to millions of people. There are few people, I think that will be remembered in one hundred years. I think one of them is Muhammad Ali. I think we'll probably remember, I don't know the Beatles. I also think we're going to remember Scott Harrison. Today's interview is with Scott Harrison, someone who is an inspiration for me. I'm an atheist. So I find it fascinating when someone has this type of spiritual return to their religious values and uses it as a means of creating so much love, so much empathy that he literally does is saving the planet.

[00:07:03]

In addition, Scott is an incredibly savvy business person, applies technology and progressive business principles. Anyways, take a listen to our interview with the inimitable and incredibly inspiring Scott Harrison. Scott, where does his pod find you?

[00:07:18]

I am sitting outside a public library stealing Wi-Fi. I've stayed on the New York Pennsylvania border, sitting in my car, sheltering in place up in the woods.

[00:07:30]

We are up in the woods. Yeah, we my wife and I take care of several 80 year olds not in great health. And about six weeks ago, we pulled them out of New York City, rented a farmhouse in the middle of nowhere, Pennsylvania and, you know, have been living live in the country, life with with all of its challenges. We've got four generations in the same house which has its moments of of positivity. And I talk to a friend the other day who said I'm having a wide range of experiences, which I think would be true for us as well.

[00:08:04]

So I would imagine a lot of our listeners know you and Charity Water. We give us the headline news, give us the kind of the elevator speech on Charity Water.

[00:08:12]

We are a nonprofit based in New York City. We have been working for thirteen years to bring clean and safe drinking water to everybody on the planet. As we as we speak today, about 10 percent of the world's seven hundred eighty five million people, they don't have clean and safe drinking water. And that's that's been our mission. We've been able to get about eleven million people across twenty eight countries clean water over the last 13 years, thanks to, you know, almost half a billion dollars in donations from from very generous people.

[00:08:44]

Wow.

[00:08:45]

Half a billion. It's wonderful. So what's happened to you guys in the last 60 days?

[00:08:50]

Yeah, we saw, I guess a crater would be would be a good way to to describe it. We're seeing a lot of people just no longer afford to give, you know, Charity Water has a very unique business model where one hundred and thirty five high net worth families pay for all of the overhead. And then we have over a million donors who are giving in grassroots ways from around the world. This has affected both of those sets of donors.

[00:09:16]

Many of the people that are giving charity water ten dollars every single month are no longer to give ten dollars a month anymore as they've lost their jobs. So we've seen, you know, a huge spike in churn in the subscription program.

[00:09:30]

One of the things that I love about Charity Water is you've sort of embraced these information age, modern progressive business principles. And I remember must've been seven or nine years ago, you moved to a recurring revenue business model and you referenced at the beginning that you've asked people to pay for the overhead such that any donation goes directly to water and you have this recurring revenue stream. The wonderful thing about that is I imagine you're not. Is hit as hard as some other charities that are just just opening envelopes every day, hoping that money comes in, that you do have commitments, you do have almost like a SARS like business model.

[00:10:05]

What have you had to do, a charity water to respond to the decline in people's ability to give? How how how have you as an organization adapted such that you can keep the lights on?

[00:10:17]

We cut costs immediately. We cut our OpEx by twenty four percent a few weeks ago. So we were really quick out of the gate. I it was my belief that this would not be short term, that we weren't just going to bounce back in Q3 and Q4 and and giving would continue as, as normal. So I really thought the exact time and I took a very, very bearish view on giving. We look at this as an 18 to 24 month cycle at least, and we need to make sure we have the cash to get through that.

[00:10:52]

So we cut marketing, we cut events, we cut travel, we cut some benefits 401k match, we cut the metro cards that we give all one hundred and seven employees and then we cut mine and salaries by 20 percent. That was kind of the first wave. We're now in scenario planning for more severe cuts just based on some of the data that we're seeing. And, you know, we did we we did get one point six million dollars from from the Carers Act.

[00:11:22]

So we were one of the very first applications that HSBC put in. We were approved on Easter Sunday, which is which is great news and great program for non-profits to be able to tap into some of that. But this is we believe this is going to be a systemic downturn in charitable giving, and especially because so many of our donors are micro givers. You know, it is a lot of the ten, twenty, thirty dollars a month. Many of those people are just simply unemployed right now.

[00:11:52]

And so I think one of the hears, you know, anybody else that sits on the board of a nonprofit listening or maybe another nonprofit founder, I think often nonprofit leaders are way too optimistic about things like this. I mean, you don't get into this sector unless you have this irrational exuberance, sense of optimism that. Right. We're going to bring clean and safe drinking water to the whole world. We're going to end world hunger, right? We're going to end HIV AIDS or end malaria.

[00:12:25]

And what I'm afraid of is that people won't make the cuts fast enough and that there's going to be tens of thousands, if not hundreds of thousands of nonprofits that will run out of cash. They will not exist to see through the other side because they're going to be too slow to cutting those expenses. And their their optimism is just going to be always there. Oh, things are going to be fine. We're all going to get back to work.

[00:12:46]

People are going to be giving again. And and I've really been trying to warn as many people as possible to to prepare for a much longer and much more difficult time when it comes to to charitable donations than than they've ever experienced before.

[00:13:04]

You know, Scott, I think in addition to being, you know, an inspiration, you're an outstanding businessperson. What I've been telling all the people, all the entrepreneurs and the CEOs, the boards I'm on is that there's a saying in retail that your first markdown is your best markdown, and that is whatever cuts they're planning, double them and that people are under the impression that the crisis is terrible. But it's a crisis for everyone else and somehow that they're going to be magically spared or not feel the full impact.

[00:13:33]

What what other advice would you have for any other nonprofit trying to navigate through this? Is it over communicate with your stakeholders? How do you keep the troops? How do you keep their morale high, given that obviously it's a tough time? What any other advice in terms of just just leadership?

[00:13:52]

Yeah, I mean, we we we really you know, transparency is one of our core values. And I know a lot of people say that. But we when we made these cuts and again, this is weeks ago now, you know, two or three weeks ago, we rolled them out to one hundred and seven people in a seventy one page deck. And it was a two hour town hall meeting. We told them what we cut. We told them why we cut it.

[00:14:14]

We told them that, you know, just a little more context, we are coming off of three years of thirty five percent growth. So we had one hundred and seven million dollar annual budget this year. Three years ago, we were a forty million dollar organization. So all we've known is growth and hiring. We hired forty one people last year. Seven thousand people applied for those forty one jobs. So we were in hyper growth mode. All the rules have changed, everything has turned off and we believe we need cash.

[00:14:44]

I mean, I believe we need cash for twenty four months at a minimum. You know, I would have said we probably needed nine to 12 months of cash previously in a different cycle. So we rolled that out to everybody and, you know, the feedback we got was I mean, so much of our work for Scott, they weren't in the workforce. Seventy five percent of the people that work in charity water were not in the workforce during the 2008 2009 downturn.

[00:15:09]

They're kids. They've never they've never known this. They've never known them. Yeah.

[00:15:12]

They might have been in university. Right. So we we spent a bunch I mean, we put up tons of charts and graphs, really teaching our team. Here's what happened in 2008, 2009, and here's how long it took for these things to recover. We closed the office, I think, six or seven weeks ago when there were only a few cases in New York City. And we said, look, we'd rather be wrong and just go back to work two weeks later than, you know, be wrong in the most hyper conservative way.

[00:15:41]

And how people laugh, I mean, people are laughing. It's like, what are you guys doing? You know, this isn't even a thing yet. So I really believe that decisive action and then communicating that is, is there going to be the tools that nonprofits need to get through this? And again, moving from this optimism which serves you so well. Ninety five percent of the time. But I believe that optimism will be the death of people, the same superpower that has worked so well for them could actually create their organization to go extinct.

[00:16:16]

It could be the extinction factor of the organization in it.

[00:16:20]

In a period like this, there's so many lessons to draw from that. I think our optimism has turned a little bit into narcissism in the US, thinking that for some reason we wouldn't get this, that this was a Chinese disease and the Europeans weren't prepared. If we if this came to America, we'd be able to handle it so much better because we're such innovators. And what are we saying? That we have handled this worse probably than any nation in the world.

[00:16:41]

But in terms of key lessons you've outlined for entrepreneurs, one decisive and pragmatic, and that's Latin for cut soon and cut early, your job is to survive and then to transparency, something that I don't think we're seeing or we're seeing from some leaders, not others, is treating people like adults. We're going to be making cuts and then transparency and then over communicating to your investors. I think there's a lot of wonderful lessons. I think generosity, if you think of yourself as a generous person and a lot of us out there do, generosity is a function of giving to organizations like Charity Water when things just quite frankly, when they just fucking suck, as opposed to when your 401k and everything else is booming, that's that's generosity, too.

[00:17:27]

But it's a lot easier to be generous in good times. And I would encourage all of us and I'm going to do this as well, to be generous when it hurts. And let's be honest, it hurts right now, Scott, if somebody wants to reach out and help, what is the easiest way to reach out and how can they help? Sure.

[00:17:41]

Just charity waterdog. They can email me Scott at Charity Waterdog. I'm spending a lot more time on my computer these days, just, you know, talking to donors and responding to people.

[00:17:51]

You know, one of the many things I admire about you is that you had sort of a return to your Christian roots and are a very spiritual person, you know. Do you have any advice for us just as people struggling, as people dealing with something like this? Do you have anything you want to share with us?

[00:18:09]

I've just been trying to practice gratitude above all else. I mean, it is hard, right? We're stuck in houses. We are. I mean, gosh, it's just a hard period of time. And I've really been trying to just wake up in the morning, sit with my kids. You know, we play a game where we try to list 50 things that we're grateful for. And it can be spring. It could be a lawnmower. It could be, you know, a machete that my son got to hold.

[00:18:36]

I'm sure we were thorns the other day. This attitude of of as I say, with the kids, it's like the attitude of gratitude. When we are done with that, we are transformed as we just think about all the blessings that we've really been given. And that's not the natural position. I wake up grumpy, you know, I wake up because the kids both crawled in my bed and I got a crappy night's sleep. And, you know, the Internet isn't working properly, right?

[00:19:05]

That's not kind of the default position. And we've really tried to exercise gratitude. I think the other thing is just trying to exercise that muscle of generosity. I've always believe that the more you give, the more you give. It's just like there's muscle. And, you know, I was in a Wal-Mart the other day up in the middle of nowhere. And, you know, I'm I'm the obnoxious New Yorker shopping for seven people. And I've got a seventy dollar Lego there, you know, Star Wars, Lego.

[00:19:32]

I've got a huge amount of food. I'm shopping for a week for seven people. And there's this local couple who's behind me and they're just watching kind of the excess of The New Yorker. And I just start talking to them. I'm apologizing that it's taking so long. And it turns out the woman just lost her job. She worked in the used car business. And, you know, she has no idea when that's going to bounce. And they've got milk, they've got some sneakers, they've just got some some stuff on the car behind on the conveyor belt behind me, and I just remember feeling so grateful I had a job, you know, I've taken a pay cut, but I still have a job.

[00:20:10]

I have health care. And I remember trying to tip the Wal-Mart, the woman who had checked me out and she said, oh, we're not allowed to take tips here. And then I wound up just waiting five minutes and asking if I could run my credit card for the couple behind me. And it was one hundred and four dollars.

[00:20:25]

And this woman starts weeping in the Wal-Mart. And, you know, what's your name like? How can I thank you? I'm like, do you know my name? Scoppetta. It doesn't matter. I have a job and you don't right now. And you know, it's not a I'm not telling that. So anybody thinks it's great. I mean, a lot of us have one hundred four dollars and we could do that. But just it's looking for that opportunity.

[00:20:48]

I wanted to do it for more people. I literally wanted to walk down the aisles of Wal-Mart and see, can I do forty two dollars here. Sixty five dollars there. So I think it's looking for those opportunities. And the more you exercise that muscle of how can I be a blessing to others, how can I be generous, how can I be grateful? The more you become a grateful, generous person, especially in times like this, a great group.

[00:21:10]

So I'm going to just to sign off here, we're off to a great start with the property show. We're grateful. Being generous is is giving when things when it quite frankly, it hurts. When I get off or when I finish here, I'm going to I'm going to talk to Scott and I'm going to do something. And I hope that you all join me and that we lift we lift up our heads from our own situation right now and continue to think about people around the world, as Scott has done for the last 15 years.

[00:21:36]

Scott Harrison, founder and CEO of Charity Water, thanks for your good work, boss. And we're thinking about you. And stay safe.

[00:21:41]

Thanks for having me, Scott. OK, office hours, where I comment on subjects, I have absolutely no domain expertise in headed Griffin.

[00:21:58]

Hi, Scott, this is Elaina Dunn. I have a question for you regarding college admissions. I'm the proud mother of a high school senior named Jackson. Say hi, Jackson.

[00:22:12]

And he's in the middle of deciding which college to go to in the fall or even if he should go to college in the fall. Maybe deferment might be the best choice for him. Any of your thoughts would be greatly appreciated.

[00:22:27]

Thanks, Elena and Jackson. First of Atlanta, the best strategy for getting your son to do whatever it is you want him to do is to advocate for the exact opposite. I love that you called in together. It made me think or give me sort of a jolt of emotion. I miss my mom. My mom is the reason I went to college. She helped proof my essays. You know, a lot of my life convinced me to go to college.

[00:22:49]

My father, not what I would call a sophisticated man, tried to talk me out of college and told me that I should be installing shelving where I can make eighteen bucks an hour anyway, was my dad. But look, should you go to college or should Jackson go to college? I think it is a wonderful thing. And I air on the side of a leap year for a young man because I find that a lot of young men at eighteen are still boys and could could use or benefit from a year of seasoning in the real world, whether that's work, non-profit work or some travel or spending time helping others and just getting a sense of grounding, if you will.

[00:23:24]

And people who take a leap year are shown to first off, 90 percent of them do, in fact, return to college and they're more likely to graduate. When I got to UCLA, I was 17. I was immature. I almost flunked out. I was abusing substances. And I think I would have benefited from a leap year. And I think a lot of young men would probably the kicker that makes it a really good idea from a good idea or really good idea is the covid-19 is going to create a lot of shitty first year academic experiences.

[00:23:52]

And that is we're all coming to grips with the fact that a forty thousand dollar, sixty thousand dollar tuition does not get you a great education and a bad Zoome classes, and they will get better. But right now their bad is not worth the tuition. So in some in some Elayna, I think.

[00:24:10]

Yes, absolutely. It's a great idea to think about a leap year or gap year for your son. And by the way, absolutely push him hard to go to college in the fall such that he'll be inclined to take that gap year.

[00:24:22]

Next question, Scott Ted from Natick, Massachusetts, fellow Visalia owner, lover of Delray Beach. I know you're in Gulfstream, but technically you're in Delray Beach. Love that area. First thing I want to say to you is you're welcome. Why do we say that? Well, I remember it was September 30th of twenty seventeenth and I was at a code recode conference in Soho. And Kara Swisher was the lunch line. I walked up to her and I said, hey, I just listened to your interview of Scott Galloway, where he made the prediction about Amazon taking over Whole Foods.

[00:25:00]

And I said, I got to tell you, you two have a shtick. I don't know what it is, but you've got to have him on your show more often and all of a sudden pivot shows up. And I love that I listen to you guys all the time, so I love that. But you're welcome. Hey, one of the I was listening to Pivot the other day and Carol was asking you, I think, Cara, someone's asking about retail innovation.

[00:25:23]

And I heard something the other day that I just love Lululemon, one of my favorite retailers in all the world. They actually opened the closed stores to be able to fulfill digital orders. And I love that idea during this time of covid-19. It's it you know, instead of having fulfillment centers with lots of people in one space getting close to each other, you've got social spacing, you've got local deliveries, you're rehiring a lot of people in these stores to fulfill all those orders.

[00:26:00]

I mean, it's just it's omni channel on steroids. And I love that. So I just love to get your feedback on that. All right, man, talk to you soon.

[00:26:09]

So, Ted, Pivot is your fault. And Brothers in Arms, the Vistula, Delray Beach. And thank you for advocating or singing my praises to Kara Swisher. So, Lululemon, the idea of turning your stores or pivoting your stores from a liability to an asset is not a new idea in the form of distribution or warehouse. Best Buy. I saw this early on. Best Buy was basically left for dead and decided that they would start fulfilling out of their five hundred stores.

[00:26:35]

And if you order a flat screen television in Delray Beach from Best Buy, it'll get there faster than if you order it from Amazon as they will fulfill that flat screen TV out of their Boca Raton store.

[00:26:48]

So this isn't anything new. Probably the greatest. Unlock and retail over the last 10 years is Wal-Mart's click and collect, where they say, OK, let's turn our 50 500 stores into where warehouses that are well staffed and well lit. So it's not a new idea. What is exceptional about Lululemon is their passion for product innovation that great products break through again. If you think loosely about big transitions and capital shareholder value, the companies that have built the most shareholder value have actually opted out of marketing or opted away from traditional advertising and reinvested that capital in product development.

[00:27:19]

Lululemon is exceptional. Twenty seven or twenty six dollars billion market cap. That means you could take Nordstrom, Macy's, Restoration Hardware, Williams-Sonoma and maybe even still by Tiffany left over. So shareholders have been rewarded handsomely. As a matter of fact, they're really not that far off their highs for being super innovative around product, being totally vertical, drafting off of the incredible growth that has been fostered by Nike and Adidas, who continue to distribute 60, 70, 80 percent of their product through other parties.

[00:27:47]

Third party retail, such as Lululemon, can come in with a higher end product tapping into the wealthy. One 10 percent have captured all the gains and build a better brand on top of that better product because they control their distribution as opposed to selling it through shitty retail with a guy in a referee's suit. So Lululemon vertical product innovation and using their stores as warehouses. Gangster, gangster, gangster. Thank you, Ted. Thank you. On several levels.

[00:28:12]

Thank you for the question and being an advocate and also. You're welcome. Owning a visa. They are loving sweet animals. And maybe I'll you on the beach with our with our ViSalus. Next question, Griffin.

[00:28:24]

Higher profile marks Hopea hair from Manchester in the UK, slightly out breath. Because I've just done my daily run. I'm allowed to a day in our country at the moment stuff. Just listen to our latest episode of the show. So my question, I wrote an advertising agency in Manchester and all of my clients have been impacted by CV 19 and a lot of them have decided to turn advertising off. And it's interesting to see Coca-Cola or part of Coca Cola's business decide to turn off commercial advertising for the time being.

[00:28:59]

So my question is, what advice? If you got managers of brands to having to make the decision on whether to continue to advertise? And if you do decide to continue to advertise, do you have any pointers on how you can be sensitive at this difficult time when the world really needs kindness and help and not opportunistic advertisers? Thanks very much. Keep doing the show. We really love this side of the Atlantic. God bless.

[00:29:27]

Max from Manchester. Thanks so much for the question. I'm a man Yugi. My son is Man City so we can, we can argue about that later. So advertising I just something is getting around it. I think ad agencies are ground zero for this disruption. And just as in 2008 I worked with the Four Seasons and they did a ton of print advertising and when the recession hit, they had no choice when their occupancy went from ninety four percent to forty or sixty percent overnight, which is seems almost quaint compared to probably with their occupancy is right now they stop doing print advertising.

[00:30:01]

And a weird thing happened when their business came back. I noticed it wasn't any different, that the print advertising wasn't wasn't adding a lot of value. And you saw this huge first tectonic shift to digital. You're about to see another tectonic shift. You're going to see a lot of this these ad dollars just not come back and people aren't going to miss him that much. Radio advertising was about a 17 billion dollar market in the US last year. I bet it drops to five to ten this year.

[00:30:22]

It's just going to get absolutely crushed in terms of how to advertise. I think you have to be very careful about not coming across as too schmaltzy or trying to it's just a fine line to try and be moving and emotional. I think you talk about what you're doing. I think you talk about how you're helping. It is a decent time to do online advertising because the prices for clicks and ads on Facebook are supposedly down anywhere between 40 and 60 percent.

[00:30:49]

So direct response advertising is actually a place to overinvest right now for companies that still have the supply chain to sell products direct to consumer. In your business, you're going to have to pivot to more data driven analysis and insight around strategies. The CMO, basically an ad agency it used to feed off of being the way they made their money, was taking eight to 12 percent of a marketers budget. Now they're there to basically coach and advise the CMO and that can be around allocating capital towards going vertical.

[00:31:18]

How to better spend their ad marketing dollars on more digitally driven, more measurable means, and then being thoughtful about brand identity and how that is expressed and cemented across different touch points. But I think it's a difficult time for advertisers. I think you have to be very careful not to come across as opportunistic. And I would argue that a lot of traditional broadcast advertising is never coming back and is moving to digital channels. I think it is your job to be the advisor to the CMO, help them through that transition adroitly and help them understand how they rethink their capac.

[00:31:49]

Around product of verticalization, Max from Manchester, what a nice call and best of luck to you and God bless you as well. We love your questions. Please submit them to office hours at section for dot com. Again, that's office hours at Section four, dotcom.

[00:32:11]

So like a lot of parents with way too much time on their hands with their kids. By the way, my kids are mostly awful. They occasionally have their moments of wonder where I understand why I've decided not to eat them and keep them alive. But for the most part, they're like Iraq insurgents that have taken over the household. And one of the things we do to maintain our sanity is, and this has been a lot of fun, is we are watching movies, a lot of movies, but I get to pick movies that I watch when I was their age.

[00:32:40]

And it's been tremendously rewarding. And one of the movies we watched earlier this week is adapted from a wonderful book called The Little Prince. And there's a wonderful opening line and that is what is essential is invisible to the eye. And I'm struggling with this whole thing, as I imagine a lot of people are. And I feel embarrassed saying that because I'm in a comfortable house, I have money. I'm not worried about my mortgage. Everyone is healthy.

[00:33:05]

I don't know anyone who has died from covid-19, but I still find this incredibly scary and stressful. It's putting a real strain on a lot of my relationships and something that helps me as late at night when I'm alone, I'm a night person. The first thing is I drink and I know you're not supposed to say that, but I find drinking helps. I don't get totally fucked up out of my head, but I do have a couple of drinks and I kind of wind down and I'm purposely trying to go through exercises around gratitude.

[00:33:32]

I'm thinking about all the wonderful relationships I've had. I think about the wonderful the fact that I get to do something I enjoy and I love. And I think about my kids and I find the thing that is most comforting for me that is most essential for me is knowing my kids are healthy and asleep in the other room and that they feel safe around me. We can literally go at it during the day. I scream at my kids. I'm not a screamer, but lately I find I'm screaming and I'm embarrassed by that.

[00:33:56]

But I have been screaming at them. But when we get towards bedtime, I put them down and we have a ceremony and as mad as I am at them or as mad as they are at me, I stretch them, I adjust their back, I crack their back and I rub their heads. And then I sometimes just lay on top of them. And we have this game called I Love You More. And we talk about I love you more than pizza.

[00:34:20]

I love you more than Bob Show, who's their grand mom. And they know that that is the time when distinctive what has happened that day. We reconnect and that sets me off into my night time kind of moment of gratitude. We're sitting in another room. I recognize, you know, all my blessings. But more than anything, that comfort of having the most important things in my life, my children safe and sound and knowing that they're sleeping, knowing that they feel secure, knowing that they don't, as far as I know, have some of the fear and some of the heartache that so many of us are so many people are experiencing gives me tremendous comfort and ease.

[00:35:00]

And it's not something you can touch. It's not something you can feel, but it is essential. What is essential is invisible to the eye. Our producers are Griffin Karlberg and Drew Burrowes, if you like what you heard, please follow, download and subscribe to subscribe to subscribe come come to Daddy hit to subscribe.

[00:35:20]

But thank you for listening.

[00:35:22]

We'll catch you next week for another episode of the Prop G Show from Section four and the Westwood One Podcast Network.