The REAL Future of Marketing with Seth Godin

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Leveling Up with Eric Siu
In this episode, Eric Siu chats with Seth Godin about what truly makes great marketing—creating mean...
Video Transcript:
Seth, where do people go wrong with marketing today? Uh, I think people are misunderstanding what marketing is. It's not hype; it's not hustle; it's not crushing it; it's not elbowing people out of the way. Marketing is the work of telling a true story that spreads. It's having a strategy where the wind is at your back. It's doing work that matters for people who care. If you're doing those things, you're probably not going wrong. But if you're chasing clicks, if you're chasing short-term interactions, it's a really hard slug. Earlier, you said, when we were talking
pre-show, you said marketing and strategy are the same thing. What do you mean by that? So, people ask me for marketing help now and then. I don't do any coaching or consulting, but if a friend or a nonprofit needs help, they don't have a marketing problem; they have a strategy problem. Strategy is: what is the change we seek to make in the world, and what are the tools we have to make that change happen? How are we going to work with time and games and systems to help people get to where they want to go?
If you can answer those questions, marketing is really easy. If you can't, then you're just chasing around for a slogan, and that's not going to help. Got it. And you said in your book that strategy—this is interesting to me because I've always thought that strategy is a way of thinking and it helps guide to tactics at the end of the day, and it's sort of a map, right? But in the book, you actually say it's actually not a map; it's a compass. So, I read that little passage, it reads like your logs, and I'm like,
we need to go a little deeper on that. What does that mean, it's like a compass, not a map? Well, I wrote the book for a lot of people, but I didn't write it for you, 'cause you already understand what I'm trying to say, right? Most people think strategy is what's your plan. The reason they want to have a plan is because if you grew up in the West with the whole mindset of doing your job, a plan is if you do your job and do your job and do your job, you get the prize,
and there's no risk. It's manage to the plan. And I'm not opposed to plans, but plans are not strategies, right? Strategies say the future is not here yet. I can't be sure what the future is going to bring. Resilience matters. I am probably not 100% right, but it's better to have assertions than to just go in blind. And so when we come up with a strategy, we are making assertions about how the world is, how the world will be, and what the world will need. Right, so you and I were talking about AI and agents.
One of your assertions about the future is that talented employees are going to have plenty of AIs who are working for them, with agents that they program to do things, whereas untalented or unskilled people are going to spend their time working for an AI, right? Those are assertions that you can build a strategy around. Yeah, and so you would say then—or maybe I'm putting words in your mouth here—but strategy, if I'm thinking strategy is a way of thinking, then ultimately strategy is philosophy at the end of the day, right? Mhm, that's exactly right. It is
a philosophy of becoming. Who do you want to become? How is the world going to become? So, the investors, when I was there at the dawn of the internet in 1993-94, made the strategic assertion that the world is going to get more connected, connection speeds are going to get faster, and people are going to trade lots of things for convenience and connection. If that's your strategy, it makes a lot of sense to invest in Facebook and Uber. If it's not your strategy, then you should go and invest in a package delivery company or something. They're
different ways of looking at the world, right? And I think maybe this might be helpful if we dive into a little bit of your strategies because, obviously, you know, we're coming up the elevator and I showed you a picture. You're one of the first—Linchpin was one of the first books I read as I was going into the workforce, and I mentioned to you that, you know, we have all our employees read it first thing as part of onboarding, right? But you know, there are certain strategies in there, or we can call them philosophies. One is
you don't want to be a cognitive machine, right? So, I guess, what are some of the core strategies for you? And maybe we can start with one. I'll maybe lead off here: you don't get caught up by the hype of, "Hey, short-form content" or "You need to do this; you need to do that." It's like, "I'm Seth Godin; I'm just going to focus on blogging. I'm going to do me. Maybe I'll do some long-form podcasts, but that's it." So can you maybe explain the marketing strategy behind that initially, and we'll kind of go deeper? Sure.
You know, I'm hesitant to talk about Seth Godin as a role model and example because we're all different, and I don't want to let anyone off the hook because great things happened to me when I was a kid. Other things happened that make me me and not you. But people say, "Well, you can do X, Y, or Z because you're Seth." And my answer is, "But I'm Seth because I did X, Y, and..." Z, what I learned coming up is that chasing shiny objects doesn't work for dogs, and it doesn't work for people either. Right?
If you catch the car, the dog is unhappy. The whole idea is that you find a thing you want to stand for, a place where you can stand for it, and you stick with it. You stick with it and you get better at it. My blog used to have comments on it, and I took the comments off because they were ruining my life. Everyone said, "You're not allowed to do that. It's against the law. Every blog has to have comments." I was like, "If you want to put comments on your blog about my posts, feel
free, but I don't have comments." Amazingly, nothing bad happened to me. And then Twitter showed up, and I was in the right place at the right time. I could have been very popular on Twitter, but I said, "Well, if I go do that, I will have less resources to spend on my blog." So do I want to be mediocre on Twitter and blogging, or do I want to be not on Twitter and good at blogging? This focus is scary because it means you're committed to something. Whereas if you're always chasing the next thing, it doesn't
matter if it doesn't work, because there's always another next thing. Right? You said in another interview, and I'm paraphrasing here, but you said you can be great at a lot of different things, but ultimately, you're just going to be invisible, right? Versus being just amazing at one thing. Yeah, so what does it mean to be remarkable? Because that is the essence of modern marketing. For people who are under 50, let's remind them that what marketing used to be is average stuff for average people. The goal of Heinz ketchup is to be ketchup for everyone, to
get as much shelf space in every store as you can. Kraft Singles is the number one product in refrigerators around the country until recently. That's average cheese for average people because you have mass merchants and mass advertising. There is no mass advertising anymore. When I worked at Yahoo, it was the most popular page on the entire internet, and even on its best day, it didn't get as many views as a top TV show because mass is gone. So what's the alternative? The alternative is to make ideas worth talking about. What makes it worth talking about?
It's remarkable. Worth making a remark about. It doesn't mean a gimmick or a hype; it just means I will get better if I tell people about your podcast or if I tell people about your brand of sneakers. How will it help me to do that? Well, that doesn't come unless you have relentless focus and the smallest viable audience that you're willing to commit to. I think I said this before, and I'll paraphrase again: yesterday's remarkable is today's average. Things ebb and flow, and things change quickly, right? You may remember when everyone was talking about barefoot
running and Vibram FiveFingers or whatever those things are. I can't remember the last time someone brought that up. It's not a fad anymore; it's just the cycle that we live in. The cycles keep getting shorter and shorter and shorter, so that's good if you're a restless creative and you want to chase the next thing. It's good if you're an ad agency and your client can't just do "plop plop, fizz fizz" forever. It's challenging if your goal is to get it over with and then rest because that's not happening anymore. I guess I want to come
back to this in a second, but in your book—so everyone that can't see this right now, actually, if we have the wide shot, we can probably see the book—it's called *This is Strategy*. So that's a new book that's coming out. You do talk about games quite a bit in there, and, you know, finite games versus infinite games. Then there's everything in life is a game, right? That's how I just think about life. So maybe if you can go a little deeper because I don't know how often you talk about games in there, because I've really
just looked through a couple of chapters right now. It's one of the four threads of the entire thinking about strategy. There are two kinds of people in the world: people who say, "I got a new game; you want to play?" Those people say yes, and other people roll their eyes and run away. This is not the kind of game I'm talking about. I'm not talking about Monopoly or Dungeons and Dragons. Games are any encounter where there's limited resources and a finite number of players with rules. That includes a job interview and how to get through
security at the airport. These are games, and if you try to break the rules, you go to jail. You can't just say, "I'm going to cheat at this system"; they're going to get you. So when we think about the assets we have and the moves to be made, it's helpful to call it a game for a couple of reasons: one, because game theory is a whole branch of math and science that you can learn from; and two, because you don't have to take it so seriously that if you make a move and it doesn't work,
it's not that you're a bad person. It's that you made the wrong move, and you say, "Oh, that's the wrong move; I'll make a different move." So when I'm talking to people who… Are trying to do useful work? I'll ask them about the game they are seeking to play, and if you've been seduced by this whole idea that you need to be authentic and all this other nonsense, you can't imagine that it's a game. But, of course, it's a game. What people want from us is to consistently play the game, not to bleed all over
the page. And why is being authentic nonsense? Well, let's say something important came up in your life: you needed a lawyer, or a surgeon, or even an Uber driver. Or you're going to a concert for someone you know, and you saved up money for the tickets. Do you want that person to be authentic if they're having a really bad day? Do you want them to be cranky? If they're tired, do you want them to drive erratically? No, you want them to be consistent. Professionals are consistent; they show up as the best version of themselves. Authenticity
is for your friends; consistency is for professionals. I love that. So, going back to the game thing for a second, I very much see this as a game, right? We're kind of playing this right now. There are limited resources; it's a two-player game. Actually, it's a three-player game right now—with Matt over there. Thanks, Matt. I think so. My coach told me this: he's like, "You know, the problem with you, Eric, is you look at life—everything's a game to you; your relationships, everything is a game—and it becomes damaging at some point." But I'm like, "But it
makes everything fun at the end of the day." So, what's your take on it? Because the coach is, I think, around your age too—a very mature guy—but he's like, "You need to stop." Well, I think your coach is misguided. I think your coach might accurately say sometimes you play the game in a way that doesn't get you what you're hoping for. For example, in a relationship, that doesn't feel like you are being manipulative, where your theory of the game is, "How do I help this person become who they want to be?" That's still a game,
but it's a game that helps you build a resilient relationship. So I'm not sure what your relationship is like with the coach; maybe you're misquoting him, but it doesn't make any sense to say, "Stop playing this as a game," because that shows a misunderstanding of what a game even is. I think so. His whole thing was—and this is a real quote—he said, "Not everything in life is a game." But in my mind, I'm like, "But it is." Because I played so many games growing up; it's just what I'm used to, right? So, you say Dungeons
and Dragons, all these things—I'm like, everything business is a game; relationships are a game. But to your point, I guess maybe this is where we should talk about finite versus infinite games. I try to play infinite games as often as possible, so can you explain the difference there? So, James Carse wrote the original breakthrough book in the ‘70s. My friend Simon Sinek updated it recently. There are two kinds of games: a finite game is the game most people think of—soccer. There's a timer, and there's a team that wins. An infinite game is like playing catch
with your nephew. You don't try to win; the purpose of a game of catch is to play more catch—to engage with people and get closer. So, most of the things that we are doing in business are actually an infinite game. When Nordstrom says, "We're going to give you a refund on that snow tire even though we don't sell snow tires," they're not doing it because they're a charity; they're doing it because they're playing an infinite game. They're saying, "This investment we are making is not just in our relationship with the guy who bought the tires,
but with the employee who works at the tire counter, with the staff in Anchorage, Alaska, and with the story where it'll spread that moving the game will help us play the game even better tomorrow." Too often, hustle culture is about— and the whole idea of pickup culture, which Neil Strauss called "the game"—that is not an infinite game. That's all about a finite, manipulative game where you seek to win and leave nothing but rubble behind. I've abhorred that my whole life; that's what my parents taught me, and we can do better than that. All right, quick
note: this is about my company. It's called Single Grain, and Single Grain is an ad agency where we're focused on driving innovation. So, when talking about a couple of new strategies, if you need help with marketing—great! If not, here are a couple of new strategies that you should try out. One is programmatic CRO. We are doing programmatic conversion rate optimization on our site; we're building products that will automatically optimize your site to increase conversion rates. We're also auto-optimizing, auto-updating from an SEO standpoint, and we're constantly thinking about what else we can do in terms of
enriching the visitors that are hitting your website and also tailoring custom messages for them using AI. So, there's a handful of things that we're doing from a marketing standpoint, and our mission is just to drive more innovation. If you want to learn more, just go to singlegrain.com—grain like rice—so, singlegrain.com to learn more, and we'll see you inside. Going back to it, funny you mentioned the Nordstrom story. So, I was talking to... This guy and um we're talking; he's a businessman, and then um, you know, he's and he starts talking about the Nordstrom Tire thing. It
turns out he was the guy that came up with that. So my main point here is that he looks at life—he's in his 80s right now—but everything in his life... he had no reason to get on a call with me. It was like a 15-minute call that went for 45 minutes, and he's just like, "I just want to help people." To me, and I think to you too, business is fundamentally about helping other people; relationships are about helping other people. Well, if that's the case, then you should just keep playing the game that way and
not play the zero-sum games that you're talking about, right? Yeah. Generosity is often misunderstood. Generosity is not giving everything away; generosity is expending emotional labor to do things you don't feel like doing to help somebody in a transaction that is mutually beneficial. You can charge a lot for things that are generous! Right? Back to the surgeon: if the surgeon says, "I'm going to do heart surgery that's going to save your life" compared to the other surgeon who hasn't trained the way I have and it's $40,000—that's generous, because they could put that effort into something else.
They're putting that effort into you. So when we think about being generous, when we think about these transactions, the market shows up and says, "This is what I am interested in." Your job is not to just take notes and do it; your job is to engage and help that person get to what they really seek. And when it turns into manipulation, that's when we're not actually getting them what they seek; we're just getting what we want, and they lose. What we're looking for is empathy. I'm not you; I don't know what you know. I don't
see what you see, but I'm going to make some assertions about what you want, and I'll create the conditions for that to happen, right? So would you say ideally people are playing games that don't feel icky? Games that are zero-sum can feel icky; games that aren't—where you're helping everybody—they feel good. I don't know the story inside your head. Some of the people I know who are real hustlers don't feel icky about it. Con men don't feel icky; con men are good men because they don't feel icky. Interesting, that's true. That's true. Um, maybe we'll come
back to that thread as well. But you mentioned that games are one of the four pillars in your book. What are the other three? Empathy, systems, and time. Right, so empathy we just talked about a little bit; systems we can talk about for a really long time. Systems are the invisible, usually unspoken forces that drive culture and that either you work against or work for. So the solar system is famous; the Earth goes around the Sun not because it wants to, but because of gravity. The educational industrial complex—and 400 years of Harvard and people going
into debt to go to a famous college—that's a system. It has many, many people playing in it, people of all ages. It's been around for a very long time. If you go to any high school and you start talking to parents, you can see how deep that system exists, right? There are systems in lots of places. The fourth one is time, and time is fascinating to me because everyone knows what it feels like to be here right now as opposed to yesterday, which is a memory, and tomorrow, which is a prediction. But tomorrow, it'll be
here right now, and today will be a memory. So all of this is getting shuffled all the time, and everyone's going to get tomorrow like a new card out of the deck. When we build a strategy, when we think about the first day that you and Neil did this podcast, how many people listened to it the first day? "We're lucky—like under 100 maybe?" Yeah, yeah. Like every podcast I've ever been on, the first day was less than 100—and now millions and millions and millions of people! So you bet on time. You said, "How are we
going to plant seeds on Tuesday so that six years from now we'll be glad we did?" If you don't see time, if you don't acknowledge time, then everything's a crisis, right? One of the riffs in the book is about doing things at the last minute, understanding the next minute, and seeking the best minute. The last minute: if you're somebody who's always on deadline, you're living your whole life in the last minute, which is really enervating. The next minute is going to be here in a minute no matter what, and the best minute is what was
the one minute of yesterday that was the best minute of the day? How can we get more of those? I'm trying to help people see you don't have to live a life at the last minute if you build slack into your system. Got it. So is it that the best minute is more of a minute of reflection, but based on that reflection you can set yourself up for the long term? Because let's use an example: you're very intentional with your time; you're very intentional about where you spend your time creating content too, right? So, I
am super lucky because I don't have a boss and because I'm going to be able to put food on the table tomorrow even if I take a day off. But for me... Best minute from today might be you and I having a conversation and you changing your mind about something, and me seeing it in your face because I laid the groundwork for you to have that leap happen. That's why I came. If not for you, then maybe someone who's listening to this—that would be a best minute. Whereas sitting on the train, I could have spent
a minute in reflection, but I didn't because I was busy doing something else. So we can choose what our next minute, our best minute, is going to be, but we should probably seek it out and not wait for it to happen accidentally, right? Like, we're only a couple blocks away from a lot of law firms, and I think if we went and talked to some third-year associates at these law firms, they would have a lot of trouble thinking of a best minute they'd had at work in the last month. Fascinating. And okay, so that's time.
Um, and obviously we don't have enough time to go through the entire book, but empathy, I think, is a thing that a lot of people struggle with. I definitely do. On my personality test, I'm like 14% out of 100% on empathy, so it's really low. But the good thing is I'm like 87% unhelpful, so, okay, you know there's a little balance there. But how can people get better at empathy? Or how does empathy relate to strategy? That's a better question. Well, so let's say that—well, not let’s say—in the book, I'm not arguing you should be
kind and soft and do this 'cause it's good for the world. What I'm saying about empathy, which I do think you should be, but that's not what I'm saying. What I'm saying about empathy is people have the freedom to buy your project or not. They have the freedom to say yes or not. They have the freedom to engage or not. Denying that freedom by acting like you're in charge and that they should do what you say lacks empathy. So let's say you're a stand-up comic and you've had a tough row of it, but your agent
finally gets you a good gig. You really work on your set, you show up at the gig, and it’s 300 people—you bomb! There isn’t a laugh in the house, and you discover on your way out that it’s a tour group from Italy, and no one speaks English. So whose fault is it that you bombed? Right? Well, it's your agent's fault because they didn't tell you that no one there spoke English. You were telling jokes in English, insisting that they get the jokes, but they don’t speak English. They're not your audience. So empathy says you get
to pick your audience. Stop arguing with people who don’t get the joke. Stop arguing with people who don’t want to go where you’re going. Pick the audience that needs you. If they don’t like your work, make better work. If they do like your work, they'll tell the others. So, empathy is this simple idea: to say if I don’t get what these people want, and I can’t assert it, then I can’t do good work. Got it? So, empathy in this context is just really trying to understand who your audience is, which audience you want, and then
creating the conditions for those people to show up. So if you walk into a gluten-free bakery and say, "I really, really want a blueberry muffin, but I don’t have a gluten problem, so will you make one with wheat in it?" That’s not a fit, right? You’ve made it very clear who this bakery is for—that’s who you should try to please. Got it? And to your point, you do have a lot of points in there around systems. So, how does that connect with strategy? At the end of it, well, kind of answering, everything in life is
a system, right? Actually, so this is interesting: have you heard of this book called *Reality Transurfing*? No? So, um, and this kind of relates. In the book, it talks about pendulums. Pendulums are basically— it can be like if you join a gym, that's a system, right? Or a pendulum. If you like drinking, that's a system in itself, and they pull you in to kind of do their bidding, right? And so, it’s just saying that in life you have to be aware of the systems that are trying to control you. There are good ones, but you
have to let the good ones in, but you have to be very mindful of all the pendulums trying to control you. Do you see that as the same thing? Very related, right? So if you want to get venture funding, you're not signing up for the rational idea of someone investing in your business. You’re signing up for the system of tech venture investing: the PowerPoint decks, the clothing, the time frames, the language—all of those things are built into the system. And people who play that game often intuitively think they’re really smart. No, they’re just in a
system that they match. Other people who have totally great business ideas are able to grow them without talking to those people at all. There’s nothing wrong with what they did; they just did it a different way. But if you pick a system, you can't then try to change the whole system because it doesn’t want to change. It's very good at sticking around—that's why it’s here. And culture is invented by systems to help them stick around. That’s how we got all the cultures of our life. have stuck around, have reinforced these beliefs. So if there's a
real change you seek to make—like the climate—you can announce that you want to just tear down the whole system; that capitalism is the cause of this problem. We must live in a post-capitalistic world. Good luck with that, because that system is too big for you to change. But you can use the system by helping the system get what it wants. In Malcolm Gladwell's new book, he talks about how 50% of the people who get into Harvard get in because of sports. This is an astonishingly large number. Yeah, and if you are from the right part
of the world and you get really good at, say, women's rugby, the chance of you getting in is excellent because there's a person in Harvard who has a problem, and their problem is they need to find better women's rugby players. So you see the system, you dance with the system, then you use the system against itself to get into Harvard, because that was your goal, right? And if you play rugby when you get there or not, I don't care. The point is we can learn to see these systems and not say, "Oh, I need to
be judged by them." We merely need to say, "When I feed this algorithm, when I feed this filter, when I give this system what it says it wants, I get this other thing." But then I can go use the momentum I got to start making change happen. Going back to the venture example, let's say you want to play within the system of venture; you just understand that, okay, you’re going to have a board now, you’re going to have people on your cap table, and if you don’t learn how to play the game of that system,
then you are going to lose your shirt, and you’ll be kicked out of that system. Correct? Yeah, correct. And then when we see people who end up with multi-billion-dollar companies, who have certain kinds of control, that’s just because they played the game better. I think Mark Zuckerberg did a great job of that. So, can we speak to maybe your—this is the 29th book or the 30th book? It’s hard. You know, I was a book packager before this. Before I started, I started one of the first internet companies, but before that, I did 120 books, so
who knows how many books I’ve done? I just say this is my 22nd bestseller in a row because it sounds like a round number and it seems to be true. Nice. So what is the strategy behind the long-term strategy with books? Because this is something you’ve stuck with and it’s been tried and true. This is a system you’ve worked. It is a system I have tried to change and also worked. I got Amazon into the business of publishing books. I’ve self-published things. I’ve challenged my friends in publishing on a regular basis, but then I go
back to big publishing houses. I can see the system. The generic advice for someone who’s making a book: number one, your job is not to get on the New York Times bestseller list. We know why that is important as a system signifier, and I think it will help explain things here. So in the 1980s, Barnes & Noble was dominating the book business, and they decided that any New York Times bestselling book would be 40% off, which basically was their cost. Then they would put them in a big stack, so if you got on the list,
next week you would sell even more. So that became an easy status measure that book publishers decided would focus everyone’s attention. That was 40 years ago. Right now, it’s easily gamed; it means absolutely nothing. It doesn’t get you any special treatment anywhere—it’s just an ego thing. So I fired the New York Times years ago. I don’t do things to get on the New York Times bestseller list because it doesn’t matter. What does matter are two things: one, write a book that after people read it, they want to tell others; and two, sell the first 10,000
copies just to people you know or people who trust you. After that, as Sean Coin has said, it’s the book’s job to sell the rest. So James Clear sold 15 million books, but he didn’t. James Clear sold 10,000 books, and then his book sold 15 million books. That’s the opportunity. In my case, my blog reaches way more people than a book does, so why bother writing a book? I only do it because I feel like I don’t have a choice—that the idea demands that I tell people through my actions this is the really important one.
This one’s worth taking your time reading and discussing, and if I can get away with a blog post, I always do because then I’m over it, and I can go back to whatever else I was doing. But this one wouldn’t let me go, and I love the craft of it, and the people are terrific. Yeah, I mean, it’s funny. I talked to a couple of my friends that have done books, and they have businesses too, but they’re just like, “Man, I never want to do a book again; it’s like eating glass.” But you’ve done it
a handful of times, right? So I guess it’s a labor of love for you. It is. It is not an economic transaction in any way. If you’re going to be a consultant—which I’m not—or a speaker—which I am. Am what it does is, it's a status signifier. It says, "I didn't do this by, uh, finding a shortcut; I did this by having something to say." So that was the real benefit of my first few books. But after that, it became a craft, just like chopping a quarter wood. That's a little like eating glass too, but some
people like to do it. All right, um, you're talking about systems again. Your philosophies are, I mean, look, you've founded—I remember using Squidoo in the past—um, I think you were coined as, and you can correct me if I'm wrong here, but you helped invent email marketing. I did, in fact, invent email marketing, and I'm happy to say so—not spam, just the good kind. Yeah, how did you invent email marketing? I didn't even know that! Okay, so here's the deal: it's 1989, and I had recently left a software company where I did software with, uh, Earl
Stanley Gardner, Michael Kryon, Ray Bradbury, Arthur C. Clark, and I loved that craft of being in the software business. But there was sort of a void in the late '80s, and a startup called Prodigy called me up. They said, "We're IBM, Sears, and CBS, and we're building this online thing." It was just like the internet and definitely not like the internet. This was long before the World Wide Web. Everything was controlled in one big building in White Plains, New York. Every line that was typed into a chat or comment board was approved before it was
posted, and the thing looked really chunky, and it was very slow. The problem they had at Prodigy was that it cost $10 a month to join and a lot of promotion to get you to join. If you joined and used it a lot, they lost money because they had to build a modem for every single user who was using it simultaneously. Sorry, Prodigy, back in the day—that was still an ISP, right? Internet service provider? It was; there was no internet. Okay, if you worked in a college, you could use the internet, but there was no
consumer access to the internet, and it was before AOL. Right. So if you used it a lot, they lost money; if you didn't use it at all and you quit, they lost money. So what they needed you to do was to use it a little for a long time. So I invented a game for them called Guts, and it became the most popular online game of all time at the time. You could only play it for seven minutes a week, and then next week, you could come back and play for seven more minutes. So it
solved all of their problems. I was like, "I get this internet thing." We didn't call it the internet, but I saw a system being built here. I wanted to make software in this world. Then AOL called and said, "What can you build for us?" and then Microsoft had an online service: "What can you do for us?" I realized that if I was going to build software for each one of these platforms, I was going to go bankrupt because they were all different and they didn't have an API that would make it easy. But all of
them enabled email. You could send an email from Prodigy to AOL; you could send an email from AOL to CompuServe. So if I could build an email engine, I could run on any service. So we built a massive email engine. We had like four engineers that, like, shoveled coal into it to keep it going, and we were getting and receiving more email every day than any entity on the internet. I used it to make games, and the idea of the games was that each move came by email. If you're tied for first place in a
game and an email comes in, you're going to open it. So we had an 86% open rate and a 35% response rate to the emails we sent out. These games started to work across networks, and I said, "How am I going to pay for these things?" Because AOL would pay at first, but how am I going to do this? So we started getting sponsors. We worked with Procter & Gamble and other companies who would put money in to sponsor these email games. As I was doing this with these huge response rates, talking to these big
companies, they were like, "Games are fine, but how do we just get people who want to buy a pair of pants to open an email?" That led to me coining permission marketing, and I then wrote the book to broaden it from their games to, "Why on earth would anyone open an email from you?" Spam is bad, spam is bad, spam is bad, but there's this other thing: how are we going to do that? So Yoyodyne became this company that companies could use before MailChimp to do promotions, and then we sold it to Yahoo, and the
whole industry was born after that. Got it! That's a great story. All right, agency owners, if you want to grow faster, my partner Neil Patel and I are hosting live agency owner workshops in Beverly Hills. You're going to learn how to get more clients; you're going to learn how to take yourself out into day-to-day; you're going to learn how to recruit the right people, and you're going to be hanging out with like-minded people such as yourself. So if you want to learn more, just go to marketing school.i agency. Again, it's marketing school.i. Agency, and we'll
see you on the other side. The reason I asked about that is, like you, you've done that. You've done a handful of other companies, and where I'm going with this—because the friend I was talking to that was sitting in your seat yesterday—you know, in our mid-30s now, we’re realizing the trend is that you do one thing really well and you do it for decades, right? And it goes back to the focus thing. Back in my 20s, I would read a lot of books and talk to a lot of people who said, "Yeah, you’ve got to
focus," and you hear Warren Buffett say, "Yeah, you've got to focus," right? But in your 20s, you don’t want to listen to that. You try everything; you dabble a lot, right? My friend Neil actually said this: he's like, "Dude, the problem you used to have was you had shiny knowledge syndrome—not even shiny object syndrome. You read everything, you implement everything, and you’re on to the next thing, on to the next thing, and you never go anywhere." So I guess my question for you is: how did you really know when to lock in? Because I feel
like, even reading your stuff in the very beginning of my career, you've always been very focused and very good at saying no, right? You've honed in on your system, and how did you do that? That is a question. So, I'm terrible at focusing, and I haven't done a great job. I would be significantly more conventionally successful if I had focused. If I had started MailChimp, right? There were so many things that were right there, and I was like, "This is not interesting anymore." I focused on being the public version of me who does interesting, productive
things, and if the projects I do end up having a life after I'm done, that's fantastic, but that’s not what I signed up for. What I would say, back to Neil, if I were in your shoes, is: what does success mean, M? Right? So you’ve produced an enormous amount of value for a lot of people. If your goal is two more zeros, then he is correct; this shiny knowledge thing isn't going to get you there. If your goal is to win on Jeopardy, you're halfway there—you could do that, right? But what I have focused on
is I don't start a project unless I think I have enough resources to get through the dip, and when the project has reached the point where I don't believe more effort from me will get more returns for me, I stop. If I was sitting here frustrated that I haven't achieved enough, you would correctly say I'm stopping at the wrong time. I don't think you have to do a project for 30 years for it to pay off, but I do think you have to be aware of where the slog is and what the rewards are for
going through the slog, right? This is a game again; you have to understand the game that you're playing. To your point, if on my grave I just want to say this guy was a good learner and a good teacher, well, therefore I’m doing that right now. I think it's when you have to understand the game, and if it no longer feels like a game, maybe you jump out of that system, which goes back to your book again, right? Yeah, that’s amazing. Exactly right. So, you know, I saw social media coming. Squidoo was before Pinterest; it
was right at the beginning of Facebook, if not before Facebook. We were the 40th biggest website in the US; we had nine employees, and Google shot us down. That’s a whole other story. But it would have been easy in that moment to shift and say, "We're going to go build a Pinterest and stick with it for a decade," or "We're going to go build a Twitter and stick with it for a decade." I decided the juice wasn't worth the squeeze; I just didn't want to commit to that sort of enterprise. Knowing yourself is worthwhile because
you only get today once. If the game that you're playing right now, if I say, "Okay, I just want to learn and teach for the rest of my life," maybe for someone like Neil, it’s more zeros. What do you think it is for you? What game are you playing? When I'm wearing my teacher hat, I would like to have the people I'm teaching teach other people. I don't spend a lot of time reaching out to new people; I'm not trying to do that, but I'm trying to give the people who get the joke tools so
they can teach other people. That is what has happened here; that’s why I’m here. Yes, that’s amazing. And then the bigger arc is: I won the birthday lottery. I have so much privilege and opportunity, and I would like to leave things I touch better than I found them. That’s great. Again, how long do you think it took you to realize that this is the game that you're playing? I struggled when I went out on my own. I got 800 rejections in a row the first year. That meant 800 times someone in book publishing bought a
stamp, put it on an envelope, and mailed me a letter saying, "We hated your idea." That adds up, right? And so this idea that you have to pay the rent was a... Struggle, and then, um, I met a guy in the book business who I did a book with, and he explained to me how I was playing the game completely wrong, how my story was confused. I was approaching it like an MBA; I wasn't approaching it like a book person. And the penny dropped; I got the joke. The book publishing industry has been great for
me because, until recently, it does not reward short-term hustle. It rewards people who are going to patiently execute the project in a way that will stand the test of time, because books have been around for hundreds of years. That was a perfect balance to my short attention span. I think, ever since then, the arc—like, it would have been really easy to become a spammer. In 1993, there was plenty of open space for someone who understood games; there were so many ways that you could rip off so many people. I didn't even spend 10 seconds debating
whether I would do that or not. There was one Usenet board where I posted one note to see what would happen, and I saw what happened. I was like, "Oh, I understand this. I don't want to do this ever again." Yeah, so the book publishing industry taught me how to play long-term games. Yeah, I think people just need to either get punched in the face at a certain moment to learn how to play long-term games. Um, maybe that was it for you. Um, maybe that's what it is. Because even if you learned that all the
successful people, quote-unquote, have played long-term games, I don't think that's enough; you have to actually get that punch. And so, the 800 rejections, was that punch for you? Um, for me, maybe a different story, right? So, yeah. And I, you know, I think that part of what I'm trying to do in the book is make it easy to talk about. If you're not talking about your strategy, it's either because you're afraid of it or you're embarrassed by it. And you should be neither; you should be very comfortable with peers being able to say back to
you, "I heard your strategy. I don't understand it. I don't know why you're doing that." Right? So, in Facebook's case, when Mark and Cheryl said, "We're going to take political advertising," I think they should have had a much more nuanced conversation about that strategy. I think that was a terrible strategic choice. And so, I guess, going to your book and talking about good strategies and terrible strategies, this book, it doesn't just apply to marketing strategy; it's anything strategy, right? It's not just business; it's also life strategy, right? Yes, exactly right! Got it. Right? How, if
you get pulled over by a cop, what is the game you are playing? What is your goal? What is the cop's goal? How are we going to end this transaction in a way that they get status and affiliation, and I get status and affiliation, and I don't go to jail? Right? Like, that's still a game. Yeah, and the empathetic component is like, what do they need? What do they want? Are they trying to hit a quota? Right? And then timing, too. If you're stupid, you say something stupid, okay? You're going out; you're taking out of
your other games for a while. Exactly right. Okay, I love it. Um, speaking of strategies, I mean, we would be remiss if we don't talk about AI. So you've said it's the biggest thing you've seen since maybe, like, I don't know, the biggest change since electricity, I think? Correct? Um, so, and you've said that quite a few times in other interviews. Like, what are you seeing recently, um, that is, I don't know, catching your attention? So, I think what's happening recently isn't important; it's thrilling, but it's not important. The path is very clear between agents,
persistence, and the network. It's obvious to me that AI, five years from now, is not going to be recognizable. So, let's talk about electricity for a second. Every company that, when electricity arrived, said, "We're not going to deal with this electricity thing," is gone. Right? That it used to be there was only one electrical outlet in the house, it was a light bulb. There were no things with prongs that you could plug in. So if you got a washing machine, which was the first giant time-saving invention, you had to unscrew the light bulb and screw
in the washing machine. I didn't know that! And it would sit in the middle of your living room, and it wasn't very well balanced, so it rocked back and forth. Sometimes it would move, and more than a dozen times, its movement would wrap the cord around the neck of somebody in the house and kill them slowly. And so, plenty of people said, "Electricity is horrible; we need to have nothing to do with electricity." So right now, we're in the washing machine phase. AI is doing some cool things; it's not costing too many people their jobs
yet, but it's about to be this very significant transformation. The short version is, if you do a job that AI can do, either you're going to figure it out first and change your job so that AI works for you, or your boss is going to figure it out first, and you're going to lose your job. But just like the steam shovel created more jobs than it destroyed, I believe AI is going to create more jobs than it destroys. But we can't even describe what they are. It's going to be about creating value by fueling the
network and helping people get to. where they want to go. So, if all you do as a radiologist is read x-rays, you're in big trouble because an AI can do that better than you. But if you're able to connect, inspire, and educate people around you in a way that AI can't, then you can use AI as a tool. I think you said this best; you said that AI replaces mediocre work, and that's exactly what's going to happen. It's going to level everybody up long term. Is that how you're seeing it? Nothing ever levels everybody up.
There are going to be people who have to go through a lot of pain because the system has pushed them into being a cog, and they haven't had the foundation to push back. People like us, who were lucky enough to grow up knowing that we could push back against the system that wants us to do less, have—but we're going to have a massive challenge of education. The good news is, I think we're very close to AI having a diamond age solution to education that's going to be breathtaking. Yeah, I mean, I invested in this company
that gamifies education, and I think you combine that with AI and everything's infinitely patient. It'll tutor you 24/7, and then you have multiple agents helping you. I think we should be able to have a renaissance when it comes to education. But to your point, talking about systems again, at least for me, the system I grew up in—the education system—was completely broken. For it to link this, everything all comes around; it creates a bunch of cogs. So, how do we have—how does someone that was maybe trained to be a cog get out of that? The educational
industrial complex is filled with well-meaning people, but the gravity of it—which was created by industrialists who want compliant factory workers—is hard to resist. So, what's the change agent? That's something I talk about in the book. A change agent changes the system with force. The change agent is well, yeah, but if I hand an iPad to a kid, it's completely outside the zone of the educational industrial complex. So, things are going to shift. You know, Sal Khan at Khan Academy started this thing, so now some fourth-grade teacher walks in, and their kid—one, three, four kids—already know
calculus; that's because they did it outside of the system. And so, I think what we need to figure out how to do is teach people resilience and initiative. If we can enroll a generation in the idea of initiative, the tools will be available. But if they don't have initiative, then we've got troubles. Got it. And you would say curiosity probably goes into initiative, correct? Yeah, yeah, that's— I think those are two ways to encapsulate it. You know, I wish they taught us how to play poker in school. I mean, eventually, we just went off on
our own and gambled, but a lot of pain from poker. Yeah, I mean, Annie Duke is teaching poker as a way to teach decision-making because why not do that? Of course, that was a great rebrand for her, if you even want to call it a rebrand. But as we work towards wrapping up here, I mean, we would be remiss if we don't talk about storytelling, right? Because we're all emotional creatures. So, what would you say? How do people get better at storytelling? Certainly, people can watch how South Park does it, and I think that's a
great one-minute video. I think everyone should check that out. But how would you say people can get better at storytelling? Well, again, the words matter. Stories aren't just "once upon a time" and a plot. So, here we are in this spectacular studio that Matt is running; there's a story. The potted fern is a story. The shure microphone is a story. The lighting is a story. You go to an open house, and it smells like apple pie in there—that's a story because it reminds you of growing up, right? Stories are simply little invisible hooks into the
experience we already had before we encountered the story, and stories include tension. They always have tension—the tension of what's going to happen next, the tension of "this might not work," the tension of "am I in the right place at the right time," the tension of "I'm rooting for something." If you're not doing those things, then you've willfully walked away from story and chosen to be a commodity, and you only sell a commodity. To me, storytelling is a game that I haven't exactly mastered yet. I guess everything you're saying is true; yes, there absolutely needs to
be tension. You know, story is a feeling—it's very much a feeling. But where else, I guess, how did you get better at storytelling? Because for you, it seems to come so effortlessly. And maybe before you answer, I know that even with your blogging, you—I think you still blog every single day, correct? 9,000 in a row. Okay, so it's not just one blog. I saw another podcast you did. You're writing four plus a day, and you're throwing most of them out; you're only picking one. So maybe you can answer this: how did you become such a
prolific storyteller? I often get notes from people saying, "How do I learn marketing? How do I get an internship?" My answer is, you learn marketing by doing marketing. Go raise money for a nonprofit; go to some garage sales and sell their stuff on eBay. The way you learn to tell... Stories—it's all about telling stories. I learned to tell stories in the Northwoods of Canada, three hours north of Toronto, helping kids get into a 16-foot-long canoe and paddle it by themselves, creating the conditions and aura of magic around something that could have been fairly pedestrian—stories that
were silly, or scary, or thrilling. When a story worked, I did it again, and when a story didn't work, I never did it again. Got it? So you never went to those story competitions or anything like that? You just continued to hone your craft, saw what landed and what didn't, and kept iterating, right? I still do. Every single time I interact with another person, I am practicing my storytelling. Got it? I love it—it's such an underrated thing because when you go to dinner parties or whatever, the people that command the group are the storytellers—not that
they're trying to command the attention of the group, but they just do; they're magnetic at the end of the day. Yeah, and most charisma comes from curiosity and giving other people space. We think people are interesting when they appear to be interested, and so that's where we begin. None of my early storytelling would have worked if I wasn't interested in the people I was telling the story to. That's a big one—I never thought about that. Okay, so we talked about how you do storytelling, and you're still a prolific learner in my opinion. So what's the
Seth Godin learning system right now? Oh, I am not in your league—not even a little bit. It's semi-random. I read a ton of blogs, and if there's a new tool that makes me uncomfortable, I learn it. I made a mistake with Photoshop when it got to version three or four; I was good at version one and two, and then I was really busy. I thought, "Ah, no," and I haven't caught up since. I try to avoid that. I say, "Here's a tool I'm not sure I'm going to be able to use productively, but I'm going
to learn how to use it so then I can decide I don't want it." Got it? So this will be the last thing, I suppose, but you have this aura—you talked about auras earlier. You have this aura of wisdom and patience, right? I think you're a very patient person. You have this quote—you say, "Don't hustle." What do you mean by that? Okay, so I grew up playing hockey; my dad was the coach. Hustling in hockey, or even baseball, is a good thing, right? Someone who's hustling in those sports is expending unreasonable amounts of energy in
short periods of time when other people aren't. But that's not real life; that is a very circumscribed game. Nobody I have ever met says, "I really like that person—they hustled me." No one ever says that. We don't want a close talker, a high-pressure salesperson—someone who is all up in our face. That's not how you earn trust; it's not how you earn loyalty. And if you don't have trust and loyalty, you can't tell a story. So when I say "don't hustle," I mean don't take shortcuts at other people's expense. Take shortcuts that help you avoid places
where people are hiding—I’m in favor of that. Take shortcuts where you can skip a meeting and just claim responsibility—I’m in favor of that. But the shortcut of, "I'm going to use pressure and become untrustworthy to get a sale," it's easy to make money doing that on the internet, but all the people who have done that in the 25 years—30 years I’ve been online—I don’t see them around anymore. Right, and where I started this last question with you, talking about wisdom and patience, to me, hustle seems like people that hustle all the time are very impatient;
they're kind of out of control a little bit. At least that's what it feels like. So how did you learn to kind of rein that in? Because the way you talk is very calm, it's slower; it's not out of control, versus I talk very quickly, which can seem a little manic at times. So I guess I'm just curious again—where did that come from? When did that come? Did you have to get punched in the face? No, I think as we wrap this up, there's confusion here, and again, I'm not a role model, but there's confusion
between what might come across in a podcast and what is actually productively being produced. So Yod Dine had 60 people in our New York office; 40 of them reported directly to me, so that was sort of crazy, but it kept my brain busy. We had no walls, so it was one big room, and every three months, everyone had to move their desk and sit somewhere else, because I wanted people to get used to change. But the excuse I gave was, "No one should have to sit next to me for too long," because my part of
the office had more chaos than other parts of the office. I am extraordinarily productive at shipping the work. When you run out of time or you run out of money, you're done, right? If it's Tuesday, there's going to be a blog post—not because it's the best blog post I ever wrote, but because it's Tuesday. We ship the work; that job interviews are the last five minutes we’re going to have these things. Happening and happening, it doesn't feel manic, but it feels inevitable. There's forward motion, so I don't think you have to be manic. I'm capable
of talking as fast as you, but I don't think you have to be manic to be productive. A lot of people I know have confused these things; they don't want to be manic, but now they're also not productive, and they're still thinking about it. I went to business school with someone in 1981 who is still thinking about the startup he's going to launch. Ah, well, I think that's a great way to end it. We'll just leave that for maybe next time. So, Seth, this has been great! What's the best way for people to find you
online and the book online? They're aligned: seth.blog is my posts; they're all free. Seth.blog for "This Is Strategy" is all the information you need about the book. All right, everyone, go pick up the book! This has been great; thank you so much. Thank you, you're awesome! [Music]
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