Video Transcript

00:09 Gary Vaynerchuk: How many people here have connected with somebody on Facebook that they had not talked to prior to that in over 10 years? Raise your hands. Almost everybody. How about 20 years? Crazy. Half. Thirty? Forty? You don't even look 40. Looking good, my man.

00:34 Vaynerchuk: What, did you find your friends from like when you were three? You look good. You look good too for 36, by the way, but your memory is shit.

00:49 Vaynerchuk: Your social graph is bigger than it ever was. Dunbar's number is fucked. It's gonna be bigger. And what's going to happen is those people in your lives who are much more emotionally pointed to your heart than a banner ad, or an email newsletter, or a piece of mail, or a commercial that you never watched, by the way, or outdoor media, is going to convert better. Word of mouth is going to scale. Your sGraph is bigger. People are going to recommend products. We're not gonna hide anywhere. No more wording about Yelp because the next Yelp is the one that doesn't let you be anybody but your true self. And when you're gonna go to real identity, when we go then, then your social equity is gonna drive your business. Then doing the right thing is gonna really matter.

01:34 Vaynerchuk: We live in a crazy world. I'm a micro, micro, micro, micro, micro celebrity on the Internet and I went to my brother in-law's bachelor party in Vegas last October. This is my wife's brother. If there was ever a time you can go to the strip club in Vegas, this was it. And when the boys were like, "Let's go," I'm like, "Fuck it, I don't want a Twitpic of me in there." We are living in a world where there is no hiding. Most of my corporate clients... Two, three years ago I started a company called VaynerMedia doing community management strategy for big brands, PepsiCo, and Campbell's, and Green Mountain Coffee and G... Big boy brands, not entrepreneurial stuff, big boy brands, big girl brands. And they always tell me, "Gary, but what about when we have a problem? What happens when something happens and they all come in?" The question always is, "Well, were you wrong?" They're like, "Yeah, but... " I'm like, "No, no, no. If you're feeding children shit that's gonna make them sick, you deserve to lose. That's what's going to happen."

02:32 Vaynerchuk: The way we all do business is gonna change so fundamentally by these culture shifts. I'm going to watch a New York Jets game in 10 years on my new Apple television, not that dorky thing that everybody has to hook up, like a television, and when Mark Sanchez throws a touchdown pass, my remote control, which is gonna look something like an iPad, is gonna say, "Do you wanna buy a Mark Sanchez jersey?" And at the height of my excitement, I'm gonna say, "Yes." And at the height of your excitement when you are watching something that looks like Gossip Girl and Sex and the City, and you're gonna be like, "Oh, my God, Pamela's shoes are so fucking phenomenal", you're gonna buy two pairs.

03:08 Vaynerchuk: The culture we live in is going to shift constantly. Guys, I don't know if you're paying attention, SEO is dying in front of our eyes. SEO is changing, the way we search, and Google is such an interesting place. I mean I don't know about you guys, how many people here have recently had something come up and whereas in three or four years ago, you would have went to Google and search, you went to Twitter and searched? Raise your hand. Just curious. Small amount, which is interesting to me, based on this demo. I beg you to try to remember to do this the next time something catches your eye, to go to Twitter search instead of Google search and see what your experience is like, see how it's different because real-time search brings enormous context and value and how that ecosystem works is fascinating to me, including buying ads in real-time as a current event is happening.

03:58 Vaynerchuk: What happens during a hurricane when you got extra tape or whatever the hell you need for a hurricane or during a huge snowstorm when a small company puts out the damn shovels when everybody is searching, to check the news on it and you're the first ad there? This is being replicated. Everything that helped me build my business with Google is now being replicated in social search. And more importantly, the algorithm of the newsfeed today that goes in my face from social is so much more important to me than the SEO of Google. And I know 'cause I look at this stuff. When you go to Google, you have intent to buy more often that social, but what happens when that becomes your ecosystem?

04:38 Vaynerchuk: See, what's fascinating to me is this. This room is very smart, very smart. I'm super pumped to be here by the way. I love this whole conference and I love the thought of 500 and 5,000... And I get blown away, when I was doing the homework on my way here, if this is creme de la crème, 'cause you're entrepreneurial. To get in here, you've gotta be growing. So if you have a big base. And looking at how young these faces, I'm shocked from '06 to be here, I thought that everybody would know, but I'm starting to learn, it takes time, and that's where the opportunity is. It blows my mind that I can sit in a conference like this and say, "It's not too late." It blows my mind that... How many people here, for their business, whether it's you or somebody in your business, go to and search your brand or things around your brand, every single day? Raise your hand. That's like 4% of this room. That means there is a huge opportunity. Creme de la crème, 4%, which means nobody else is really doing it.

05:39 Vaynerchuk: Right now, on your Blackberry or phone, you can search your brand, your handle on and see what people are saying about you. It is 2012 almost, my friends. I have no idea how you can justify leaving any engagement behind on the social web in a 2011, 2012 world. None of you would be going out to pizza in your local town, sitting next to a couple, hearing, talking about your business and you would have stayed shut, none of you. You would have all gotten up and said, "Thank you" or "How can I help you?" or "Couldn't help but overhear but that's my company, thank you so much." None of you, yet. All of you are leaving that in a scalable way on a daily basis.

06:22 Vaynerchuk: The reason I was able to grow my businesses was not because I was putting out good content. It's because everyday after producing 30 minutes of wine television, I spent 15 hours a day answering every single person's email and every single person's Twitter @reply and created contacts and relationship with that end user. These are the fucking people that buy our shit. And you are worried about all your internal shit and you should, because I am obsessed with operations, but I know people have been talking about that all day. These are the people that put the cash in your wallet and we're leaving these engagements on the table. It blows my mind. Do you know how fun it is to answer, what white wine goes with fish 68,000 times a year? It sucks shit! But I did it!

07:12 Vaynerchuk: By the way, it's not Pinot Grigio; get over that shit.

07:22 Vaynerchuk: Content is gonna continue to grow. The ability to build the business in an online world is so low. If you think about the entrepreneurs before us, they were so unlucky. It costs so much more capital and time to build a business. The piping of the Internet and the ecosystem we live in has allowed companies to come out of nowhere, very, very quickly. What that means for all of you is that, it's a race, it's a branding race, but most of all, it's a contacts race. To me, I start getting fascinated when companies start worrying about acquiring and start worrying about holding on to, when companies start worrying about hunting and start worrying about farming. Ideally, right? They want, right? One of our first clients, when we first started with them, lot of push. "Look at our shoes, look at this." We built a community talking about fashion and then conversion went up.

08:15 Vaynerchuk: Kevin Ryan, Gilt Groupe, those guys in Groupon and LivingSocial, local company here, LivingSocial, they understood how to map acquiring customers. It's a science, they figured it out. They have a cost. They re-targeted, they put little cookies on you so they're at everywhere, and they figured out the cost. The problem is, when you look at a lot of businesses like those and others, their real challenge is retention. Retention is the game. Lifetime value is the game. And there's only one way to do it, humans. It's crazy. I'm building companies that have crap load of humans. It's crazy. The human being is the value. Like I said, "As we go a new wave, the human being is where it's at." You can't outsource it. You can't automate real feelings.

08:59 Vaynerchuk: I'll leave you with this and I wanna do a couple of questions. I was in the room with a very conservative CMO, and she was really drilling me. She was like, "But what's the ROI of social media?" And I am giving her my best stuff. For example, if you want some best stuff, go look at what your engagement rate is on your Facebook page. You have a certain amount of fans and then you have a post but look at the number. Is it 0.01? Is it 0.02? It doesn't matter how many fans and Twitter followers you have, it's how many of them are gonna buy something and give a fuck. So, she is drilling me and I am giving her some really good metrics, at least, for a 2011 world, and she is pushing, and I know why, she works in a conservative company and the more conservative she comes across, the more likely she'll be the CEO. I get it. I am fine.

09:42 Vaynerchuk: But she's pushing and pushing and finally, I look at her, and I go... She's like, "But, Gary, what's the ROI?" And I'm like. "Dah, dah, dah." She's like, "But what's the real ROI of social media?" And I'm doing my normal thing, like, "Can you give me the ROI of television and print? Because I love that you spend a shit a lot of money on Vogue and you are buying the subscription but can you guarantee me that somebody is looking at the ad on page 139, because you can't." And I'm giving everything I've got and she's still punching me directly in the throat. So, I had to pull it out. She goes, "What's the ROI of social media?" "What's the ROI of social media?" So, I look at her and go, "What's the ROI of your mother?"

10:18 Vaynerchuk: She said, "Excuse me?" I said, "Uh-oh."

10:23 Vaynerchuk: I said, I have no interest in making a mother joke, and I am not making fun of you. But let me explain one thing to you. The ROI of my mother is everything. The reason I'm going to buy a multi-billion dollar sports franchise is because of my mother. My mother, the way she parented me, which, oh, by the way, is perfectly, is the reason I have the ability, the confidence, and absolute wherewithal to execute the businesses that I am building."

10:48 Vaynerchuk: However, my friends at Inc 500, I can not come to you with slides, and put them on those screens and say, Over here, click, in sixth grade when I got a mullet, and my mom said, I was gorgeous and beautiful and I could do anything, well, that was building self-esteem. And so what I did with that, on the next slide is, you'll see here, I sold a couple of more cases of wine in 1994 because of that self-esteem which led to this and now... I can't show you. I can't show you in data the ROI of my mother. But I promise you, it's all of it, the whole kit and caboodle.

11:23 Vaynerchuk: Social is gonna prove it because social has way better metrics than traditional. Some asshole stood at the top of the building with a clicker and counted how many cars drove by a billboard and that's the metrics we're using. Do you know that people do little fucking Scantron-like cards to tell Nielsen's what shows they watched? Are you fucking kidding me?

11:44 Vaynerchuk: However... Thank you for that one clap. That meant a lot. However...

11:49 Vaynerchuk: However, we keep poking holes in social. You know why? I know the size of your company, it's similar to what I'm used to. You're busy. You're doing a lot of stuff and you need to grow. I get it, but please, audit yourself. Figure out what you are doing. When people always talk to me and say, "But how do you scale this?" I say, "You take all that money you're spending on dumb shit, and you put it into humans." Thank you.

12:20 Vaynerchuk: I mean a standing... You're my only... Oh, shit.