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My First MillionHow A YouTube Car Reviewer Sold His Company For $80M | Doug DeMuro (#456)
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CHAPTERS
- 0:00 – 2:37
Meet Doug DeMuro: Quirky Reviewer and Cars and Bids Founder
Sam Parr introduces Doug, his funny dress, quirky style and 4 million subscribers, and his sale of Cars and Bids to Chernin Group. Doug responds to the praise.
- •Sam says he flagged Doug to Shaan years ago as someone who should launch a car website
- •Doug is known for his quirky clothes and talking about the quirks of cars
- •He built a YouTube channel to about 4 million subscribers and launched Cars and Bids
- •Sam says the majority of Cars and Bids sold to Chernin Group for around $40 million
- •Doug tells friends in the space to start businesses
- 2:37 – 7:39
Why Doug's Unpolished Reviews Build Trust
Shaan asks what makes Doug trustworthy and likable. Doug says there was little strategy, he shoots on a camcorder and iPhone, and he focuses on overloading viewers with info about the car's ins and outs. The talk moves to the Doug Score database.
- •Doug says there's remarkably little strategy and early videos look much the same
- •He shows you can make videos in your garage as long as the content is good
- •He gives detail on features and layout rather than spending most of the video on driving
- •The Doug Score spreadsheet started in mid-'17 and now has around 1,000 data points
- •Doug chose specialization over turning the database into a business
- 7:39 – 12:26
Growing the Channel: Jalopnik, Two Videos a Week, and Car Reviews
Doug explains launching the channel in 2013, using his Jalopnik writing to drive views, and the 2016 switch to two videos a week that made it a living. A 2017 move to reviewing others' cars sped growth.
- •Doug launched the channel in late 2013 and embedded videos in Jalopnik articles that paid $25 each
- •Moving to two videos a week in August 2016 led to $20,000 in December, then about $8,000 in January
- •He left Jalopnik for an Autotrader blog and video soon out-earned his writing
- •In 2017 he switched to reviewing other people's cars, which cost less and allowed more videos
- 12:26 – 14:22
Fear of the Tap Turning Off and Not Feeling Rich
Sam and Shaan note Doug's jokes about not affording cars. Doug explains his income never felt secure and he only felt he'd made it when the Chernin deal closed.
- •Doug says you never know when a competitor could slow your channel
- •He saved much of his income out of fear
- •He felt wealthy only when the deal closed
- •He avoided buying a new Lambo or AMG wagon because of depreciation
- 14:22 – 22:47
Launching Cars and Bids Against Bring a Trailer
Sam asks what insight let Doug take on Bring a Trailer. Doug covers modern-era focus, partnering with a viewer named Blake, the equity split, the audience advantage and the chaotic launch from his back patio.
- •Doug says they had no special insight beyond hearing dissatisfaction with Bring a Trailer's slow listings and WordPress site
- •They focused on cars from the 1980s and up for a younger audience
- •Blake, a viewer working in tech, provided seed money; Doug got a substantial majority for bringing the audience
- •The $1,000/$500 seller incentive brought 1,000 submissions in one day
- •Buyers pay 4.5% and sellers pay nothing; launch was chaotic during COVID
- 22:47 – 27:07
Selling to Chernin Group and Chilling Out
Doug describes how Chernin Group's persistence and its focus on creator-led businesses won him over, then how having money made him more relaxed. Sam shares a 'treat 'em mean, keep them keen' story.
- •Doug expected to ignore inbound interest but took a call through a friend
- •Chernin's focus on creator-led businesses addressed his fear of investors dictating his YouTube channel
- •Doug took money off the table and bought a Carrera GT
- •He says he's relaxed and working better now
- •Sam compares caring less about money to the 'treat 'em mean' idea
- 27:07 – 31:09
Creator-Led Brands and Why Doug Tells Peers to Start Businesses
Shaan asks about the risk of buying a business tied to a creator. Doug says the model is scary but works with diligence, and he urges car creator friends to build businesses before their audience fades.
- •Doug calls the model crazy but says Chernin does diligence on creators
- •The benefit is an audience that reduces paid marketing costs
- •Doug launched out of fear of losing his audience rather than inspiration
- •He tells car creator friends to start a business even though they're busy
- 31:09 – 41:51
Heel Personas and WhistlinDiesel
After a short discussion of Exotic Car Hacks, Shaan describes DrDisRespect and heel characters in wrestling, boxing and UFC. They move to WhistlinDiesel's destructive car content and how Doug estimates its revenue.
- •Shaan describes DrDisRespect's persona and heel archetypes
- •Shaan wonders why more YouTubers don't play the villain
- •Doug loves WhistlinDiesel's content and guesses he reinvests revenue
- •Doug says his audience of in-market car shoppers is valuable to advertisers
- •Doug measured ad performance by views needed to earn a dollar
- 41:51 – 47:37
Intuition, Team Building, and Staying Relatable While Wealthy
The hosts say Doug backed into good practices by intuition. Doug explains his editor hire and growing team. Sam raises the More Plates More Dates example, and Doug discusses staying relatable, Seinfeld, and his genuine love of car quirks.
- •Doug says early YouTube was intuition-driven
- •He hired his editor in March 2020 when Cars and Bids launched
- •Sam describes a creator recreating his old room to stay relatable
- •Doug compares his situation to Seinfeld losing everyman status
- •He says he still wears the same clothes and loves seeing car buttons
- 47:37 – 51:56
How It Feels to Be Wealthy and Where Cars and Bids Could Go
Doug says being wealthy is nice and has eased his money anxiety, especially with a new baby. The talk turns to Bring a Trailer's sale to Hearst, a possible $500 million outcome and the growth of online car auctions.
- •Doug says wealth feels better than before and relieves anxiety
- •He didn't splurge beyond the one car
- •Bring a Trailer sold to Hearst at a valuation in the hundreds of millions, by Doug's account
- •Doug says everyone would be happy with $500 million
- •He says online auctions give sellers larger audiences and buyers wider selection
- 51:56 – 57:14
The Feud With Car Dealership Guy and Twitter Controversy
Sam raises Doug's feud with Car Dealership Guy. Doug explains it began over a fear-mongering Ford post and blocking, and says Twitter rewards controversy. Sam gives an example of ragebait tweets driving business.
- •Doug says success on Twitter requires controversial takes
- •The feud began when Doug added data context to a Ford post
- •Doug says Car Dealership Guy blocked him and other journalists
- •Sam gives an example of an agency owner whose provocative tweet made $50,000
- •Doug says controversy sells more on Twitter than on other platforms
- 57:14 – 1:01:37
Car Museums, Donor Advised Funds, and Tax Theories
Sam theorizes that car museums like the Barber Museum are a tax hack using nonprofits and donor advised funds. Shaan, Doug and Sam debate how it might work, including appraisals and oversight.
- •Sam suspects founders sell a business and use nonprofits to fund car collections
- •Shaan reads an AI description of donating assets for a deduction
- •They wonder who determines appraised values and how open a museum must be
- •Doug says he'd need a larger exit but sees it as a way to justify a collection
- 1:01:37 – 1:07:16
Escalade, Super Cruise, and Minivan Advice
Shaan's Escalade leads to a debate on Cadillac Super Cruise versus Tesla self-driving. Doug recommends minivans for families, especially the Toyota Sienna, and describes his own cars, including a non-AMG E-Class wagon.
- •Shaan's Escalade scores 66 on the Doug Score
- •Doug says Cadillac's system is the best, hands-off on mapped highways
- •Doug recommends minivans for multiple kids, naming the Toyota Sienna
- •Shaan wanted a minivan but his wife vetoed it
- •Doug bought a regular E-Class wagon because his other cars cover the fast ones
- 1:07:16 – 1:09:53
Cross-Country Drives and Never Flying Private
Doug explains driving across the country every summer with his dog. Asked when he'll fly private, he says never after learning a flight to Nantucket would cost $55,000.
- •Doug drives between San Diego and Massachusetts each summer and fall
- •He and Sam bond over driving cross-country with dogs
- •He flies first class as a splurge
- •He priced a private flight from San Diego to Nantucket at $55,000
- 1:09:53 – 1:17:53
Fandom, Jay Leno's Collection, and the McLaren F1
Shaan jokes about Sam fawning over Doug, and Doug tells of fumbling meeting Jerry Seinfeld. Doug then describes Jay Leno's collection and McLaren F1, and how he drives his Carrera GT.
- •Doug froze when Jerry Seinfeld said he watches his videos
- •Doug describes Leno's large collection with no Ferrari
- •Leno's McLaren F1 is worth $40-50 million by Doug's estimate
- •Doug says the F1 owner pool is now rich collectors rather than enthusiasts
- •Doug drives his Carrera GT rarely but calls it the greatest driving car ever made
