51视频

Today we take a look into the future of e-commerce and talk AR, VR, voice, video and beyond in our talk with Brandon Schulz founder of Violet.io.

has built an e-commerce API for developers similar to what Stripe as done for payments. Now developers of new apps, games, and technologies have the ability to include e-commerce and sell products inside their apps.

A real life example would be a developer making a VR app to watch a live concert where a concert t-shirt pops up and is available for purchase. The VR app developer will determine how that can be bought without typing and the sale would automatically show up in the merchant鈥檚 dashboard.

While that example seems a bit far out, there are a ton of people working on new applications of all kinds and in order to be included, they need to know about your products. The easy part for merchants is that you can have your products be considered for free using Violet.io.

Transcript

Jesse: Richie, happy Friday.

Richard: Happy Friday, game on. Here we go again.

Jesse: Yeah, podcast day. All right, so, a little context here for the listeners. I think this is going to be an awesome show, but I do want to let people know, hey, if you鈥檙e expecting a tip that you can apply today and be making more money on Monday, this probably isn鈥檛 it. This is going to be a little more of the dreaming. You know, sit back, relax, have a cocktail because we鈥檙e going to talk a lot about where e-commerce is headed in the next few years and even beyond. So anyway, we will be talking voice, AR, VR, video, all sorts of cool stuff. Rich, I know you鈥檙e smiling because you like to dream about the future.

Richard: Oh yeah. Especially voice. That鈥檚 what made me smile right there. I mean, you heard it on the prediction a couple episodes back. I don鈥檛 know how long it鈥檚 gonna take til that comes in, but I think the biggest part when it comes to voice is, people don鈥檛 know what to say yet to the voice, right? You know, that like parlor tricks, what鈥檚 the weather, set the timer, all that stuff. But, I know it鈥檚 around the corner, and I look forward to it. It鈥檚 the way our brains work, you know? So I鈥檓 excited about today鈥檚 guest.

Jesse: All right, well with that, let鈥檚 bring in on our guest. This is Brandon Schultes. Brandon, how are you?

Brandon: Doing great, guys. How are you?

Jesse: Excellent. So are you the founder of Violet.io?

Brandon: Yes. Co-founder and CEO of Violet.

Jesse: Awesome. So give us a little background, what brought you into the e-commerce world? Where were you to get to where you are now?

Brandon: Yeah, that鈥檚 a great question. Kind of got my start back in the day actually building different types of apps, whether it be in the social networking space, or鈥� Then got into e-commerce on the digital side. Again, building apps back in about 2012-2013. And at the time we were trying to solve a very specific question around how to facilitate different types of e-commerce in a social network. And through that process have built startups, raise money. Actually been joined a couple of other consulting firms, consulted for a fair portion of, some of the Fortune 100 retailers and kinda got to the point where I realized that there was just something missing for a certain segment of the market and said, I think I might be the right kind of person to go in and serve that market as best as I can.

Jesse: All right, so we鈥檙e doing the real entrepreneurial journey here, so you鈥檙e creating something completely from scratch that鈥檚 going to change the world. All right. Yup. Yup. The e-commerce world. Awesome. Awesome. So, do you want to start off with telling our listeners about the company? Is that where you鈥檇 like to start today?

Brandon: Yeah, I think that鈥檚 good. I think we should, it鈥檚 been a lot of ado here about the future of e-commerce and a lot of stuff. But we鈥檝e built some fantastic technology that at the end of the day helps people who are selling things online to get more and easier distribution. One of the things that that exists out there is that, as you guys know and one of the reasons we鈥檙e such big fans of 51视频, is it鈥檚 one thing to kind of pick your product and choose to get your product up on a website somewhere. It鈥檚 a very different thing to get to $10,000 a month or to hit $1 million in yearly revenue. And one of those big humps to get over is distribution. And we saw that market and we said, we think there鈥檚 kind of an untapped resource here that fits really, really well. And that鈥檚 what led us to actually start this company and kind of how we view things. So the problem we solve is distribution, but we do it differently. We do it through technology first. So for folks that maybe aren鈥檛 developers, coders, or engineers, I鈥檒l maybe explain a little bit of what that means, but this all actually started based upon kind of who my co-founder and I are. We are guys that love innovation and as any good entrepreneur does, they start essentially by first and foremost picking their passion, right? Because at the end of the day, what you do every single day has to be something that you love. Otherwise, you鈥檙e going to either choose to do something else or you鈥檙e not going to do it that well. And we love technology, we love doing products and we realize that guys in our seat, guys that know how to build products really don鈥檛 have a lot of options. For the most part, we would have to try to build either another social media app and who needs another social media app? Not me. Or you have to build some sort of media network because in large part of what funds all these different models on the internet, is eyeballs and then you monetize those eyeballs. And so for guys like us, our options were pretty limited. And we then started asking the question and say, well, wait a second. Like how come a developer can鈥檛 start an e-commerce business? Like what would that take? And that鈥檚 really hard, like it鈥檚 really hard for someone to start any e-commerce business from scratch, all kinds of obstacles in the way. And so that鈥檚 actually where we started first and foremost. And we said, let鈥檚 figure out how we help developers who is really our customer, right? We kind of started with what, who we were and what our passion was and when we realized that what we liked and what we wanted actually meant that there were a lot of other people like us and that helps to define who our customer was. And from there we said, okay, we鈥檙e going to be dedicated. We鈥檙e going to commit to these developers, we鈥檙e gonna build stuff for them. And so what would they essentially get is what鈥檚 called an API, or an application programming interface. You guys are probably seeing that on the Internet somewhere, heard about it. It鈥檚 very difficult to understand what that fully means. But in large part, the Internet gave machines or computers the ability to talk to each other without being in the same room and connected via the same wire as it was traditionally placed. You can now have machines spread around the world and they were all able to communicate, which is great, but you then have a series of applications and you can think about it as like big databases or like bolts of data that exists in different places. And one of the ways in which those applications are able to talk to each other is through a common language or agreed upon exchange. And that鈥檚 what an application programming interface is. It鈥檚 agreed upon an exchange between different entities that lets different types of data flow back and forth through different applications. It鈥檚 sounds simple, but without that layer of trust we would not be able to do what the Internet does today. It鈥檚 for lack of a better term, Internet speak. And that鈥檚 how apps work. And so we said, okay.

Jesse: And for, I鈥檒l help the people that are like, what鈥檚 an API? In the 51视频 world, in the e-commerce, world you鈥檙e already using it. It鈥檚 when your customers are ready to check out and you need to pull shipping rates. There鈥檚 an API that talks to UPS or DHL and pulls the rates in and there鈥檚 an API that talks to the payment processors to verify payment and things. So APIs are working all underneath your current e-commerce stores.

Richard: Yeah. And to stack on that, it鈥檚 to your point in there, Jessie. Most merchants don鈥檛 ever have to worry about that. You鈥檙e specifically talking about these APIs are鈥� Now the developer, they don鈥檛 go start an 51视频 store, they can start something on their own and that connects a video game to 51视频 that wants to sell something in the video game or whatever. The merchants aren鈥檛 having to think anything about this. This is the developers that are using this to talk to these applications and software.

Brandon: Yup. Correct. Exactly.

Richard: Sorry for interrupting. Go ahead.

Brandon: No worries. You guys are great. So that鈥檚 kind of where we started and what we built and what we have today, which I think is pretty interesting, is a single API for any developer that wants to create an app that sells products. Right. If you鈥檙e a developer out there, and there were more people than ever learning how to code. And so you have essentially just a different type of entrepreneur. You have someone who wants to go to business, they鈥檙e probably intrigued by e-commerce, but the one thing they don鈥檛 have is products, and this is why we actually love talking with you guys at 51视频. It is cuz you guys are so committed to the people out there that sell products and you want to help get people on the Internet as quickly as possible to sell those products with fantastic tools. And I鈥檓 not paid to say this, but I love working with you guys as a developer. And that鈥檚 exciting for us because we now get to think about empowering a whole army of individuals out there who are going to start businesses, who are going to help serve shoppers every single day. And all they need is products. And I imagine you might be listening to this today and you sell products and you think to yourself: “Man, you know, it鈥檇 be really great if I could get my product in front of this kind of an audience or this person.” And maybe that doesn鈥檛 always fit into a search field. Like that鈥檚 often not the only way people interact with the Internet. And that鈥檚 exactly the problem that we aim to solve.

Jesse: That鈥檚 awesome. So as a merchant myself, I love it when other people sell my products and I don鈥檛 have to do much for it. So, please, please help. And I think I also want to put a little more context to non-developers. A lot of people listening that are e-commerce store owners or merchants might be thinking that the developer is their web-developer that helps them build their site. And I know you鈥檙e talking about developers as probably a higher level of more expansive view of developers, maybe more like they are founders of new companies and new apps beyond just a traditional website with a store on it. Right.

Richard: And also their real passion to your point, they might really just want to code and that鈥檚 what they love doing. And I mean I had an old friend. I鈥檓 like, “What do you do when鈥�” We鈥檙e still friends but it was a long time ago. I asked them: “What do you like to do when you鈥檙e done coding, at the end of the code?” So I know, but when you鈥檙e in, you did happy hour, your home, you code, code, you know, every, they could just code, code, code. So this person, they might not even want to talk to customers, do fulfillment, do any of that stuff. But as entrepreneurs, we don鈥檛 mind that, especially if someone鈥檚 selling our products for us.

Brandon: Exactly. That guy that said “code, code, code”, that鈥檚 my customer. (laughing)

Jesse: And maybe we don鈥檛 want to talk to them. So we talked to them via an API, which is their language. Even better.

Brandon: And that API is also commonly referred to as a Violet.

Jesse: Okay.

Richard: I love it.

Brandon: Yes. That鈥檚 a really good description, guys. Thank you for kind of illuminating on that. I think one of the things that we attempt to do based upon this, as again any entrepreneur would do, is to really focus on the value in the chain here. And for us, the value that we鈥檙e able to provide to these developers. You could call them channels, you can call them kind of a number of different things. But the value for these guys is we want to of course not only open up a new type of business model for them, which we do, they can now create an e-commerce app, which they never would鈥檝e been able to do before. But one of the unique things here is if you鈥檙e a merchant, you might sell your product for say $20 right? And $20 is a good price point. Traditionally you don鈥檛 have a lot of extra space in your margin to go and play in different types of CPC and CPM markets. But what you do have is a percent of margin. And with that we allow merchants to say, for anyone out there who can generate a sale for me, I will give 20%, 30% whatever you have in your economics, you can set that rate through the Violet platform. You don鈥檛 have to know any code, you don鈥檛 have to go in and hire someone to do anything for you. It鈥檚 basically just a button that you hit and you can set your rate. And so for the folks out there that are building applications and solving these e-commerce problems today and in the future, that guy will now get paid for all the hard work that he鈥檚 done to find a customer, get them to look at your product, to then convert that into a transaction. And if that transaction happens, then he gets paid and he gets compensated for the work that he鈥檚 done. It鈥檚 a very, very efficient type of a market. And we want to of course put the tools in the hands of merchants that are on 51视频, for example, to play with that and determine what is the best margin that we鈥檙e comfortable with and how do we incentivize different people to do that hard work and they go and find those new customers for me. So that鈥檚 one of the things that we think is really interesting, that when we really focus on the value of our customers, we can also provide new value to 51视频 customers. And that鈥檚 been really, really fun for us.

Jesse: Got It. So, again, more of a context setting. 20% is really, I mean that鈥檚 sort of almost a standard rate for affiliates. It鈥檚 about what you pay Amazon when they sell your products. So it鈥檚 really not, you鈥檙e not asking for, I would say much more than other people would ask for, for a similar type of service. Like I鈥檓 going to sell your stuff. You give me 20% or maybe there鈥檚 a sliding scale. There is a little bit, but that鈥檚 pretty standard numbers. That鈥檚 good.

Brandon: Yeah. Well, and actually maybe even say it differently. We don鈥檛 ask for anything on that number. A number is chosen by the seller. So you can just put it at five if you want, or you can put it at 50. What we do is we allow these things to exist within a market and so if you have the margin and you want to continue to incentivize and begin to optimize these things, you can turn it up as high or as low as you like. We think that鈥檚 great. Our business model, which is just slightly different, it鈥檚 basically just on a small transaction. We only take like a couple of points at the bottom, but we鈥檙e not in there to try and elbow our way in and take as much revenue as possible and squeeze people out, maximize our margins. That鈥檚 not our business. And quite frankly, that鈥檚 just not who we are. And so what we want to do is let the market be the market developers working hard, if they can get paid a good cut of the transaction, they鈥檒l take it and the merchants are getting the same thing. If they can figure out how to maximize the amount that they鈥檙e able to give to someone else, they should also do that. But we鈥檙e not going to set it. We鈥檙e not going to try and interfere. We鈥檒l let that work itself out.

Richard: Well, especially if these developers can get them in front of a set of eyeballs or ear buds that no other markets are going to get them in front of it. Like there鈥檚 a lot of competition to get to page one of Google. There鈥檚 a lot of competition to get to two, three, four pages down on Amazon. Right. But if you could get into a video game and you have a unique energy drink, that would cost you a lot of money to get in Vans or some sort of store, good luck competing with those big beverage companies. But there could be some really unique use cases here.

Brandon: Yeah, I鈥檓 curious, as you guys said, these cases come to mind for you.

Jesse: Yeah, I was going to get into that cuz I think that right now we鈥檙e talking APIs and markets and such. But like as people are listening and like “I don鈥檛 really understand what you鈥檙e talking about.” So you know, maybe an example, and I am looking at your website so I have the advantage of looking at it, but you had some examples here of what is possible I believe. And you know, our customers are 51视频 listeners and people in e-commerce are very familiar with say, what鈥檚 going on with social, where you can tag posts and take products and buy. So it basically, enables social. But I think what you enable is that if people are creating a new app, like in the video world, that a video can become shoppable, right?

Richard: That鈥檚 for the top video, or video or voice, would be the two, Jesse and I would love to cover the most.

Jesse: Yeah. Rich, what would be your example for, I know you鈥檙e a voice guy. So what would be, how do you see it?

Richard: Yeah, I鈥檓 trying to think of how to ask the question and not go too deep. But right now, kind of like to my comment earlier, most voice applications, people are, you ask and there鈥檚 not enough data or they don鈥檛 know how to ask the question, right? So Siri or Alexa. Google, in my opinion, seems to be the best because they actually have a database to pull from, right? You can, “Hey, how can I be happy?” You know, making something up and it can be like “According to this or according to this” and it can pull from its big database. Whereas you ask that to Siri and it鈥檚 like “I don鈥檛 know.” I would love either video or voice things that you would see potentially could be out there or just something you see is a good use case now or any way you want to carry it on either of those two.

Brandon: Yeah, I hear this every day. I feel like I see really, really interesting things that both are in the works and things that will happen maybe in the long term as well. But if we drill in on video for a second, imagine like a Vine with shopping, right? 15 second videos where someone can talk about a product, they can talk about their life, whatever it is, but there are now either tags or some other type of gesture, where the product pops in and that developer is able to pull in that product from someone on 51视频 and someone can buy natively without ever leaving that app. Well, I have as a qualified audience, right? Someone who鈥檚 able to curate their audience. They can now sell on your behalf. They鈥檙e generating eyeballs and that is a highly, highly engaged audience that鈥檚 willing to purchase. And if we can kind of compress that conversion funnel where they can purchase at that point, I think that鈥檚 great.

Jesse: Awesome. I had actually mentioned this to Rich the other day about, so I saw you had VR on here as well. And I had, my vision was, I was actually playing over the holidays a VR fishing game where the little, whatever the handheld thing there was the fishing pole and you鈥檇 cast and then you鈥檙e catching fish. And it was really, it was a lot of fun and I wasn鈥檛 getting bit by mosquitoes or anything. And I was like, well, what if somebody could buy the fish from this, from this game right now? So I was thinking like, you know, is that a possible use case? What are the possibilities for this application?

Brandon: Yeah, that鈥檚 it. That鈥檚 where we start to look towards the teacher. So 100%. You can be in a virtual reality experience, and a product on the surface and you鈥檇 have the chance to purchase that product. And who knows, maybe it鈥檚 actually not fish you want to buy, but bug spray, you鈥檙e out on the boat and he needs some bug spray. And again, that developer realizes, that鈥檚 a good type of product to pair with that experience. Like that鈥檚 what he is then focused on doing. Now it鈥檚 interesting because they think if you think about VR for a second, and this is where we鈥檙e sort of really focused on that value for our customers. But if you鈥檙e building that app, and someone鈥檚 looking at experience in virtual reality, and there鈥檚 been a chance to purchase a product, say it鈥檚 like recognizable and maybe there鈥檚 like a voice command or some sort of like hand gesture. When it comes time for them to buy that product, what are you going to do? Pop open a browser window. Put that in front of the screen and have them type in their name and address and all that stuff? No, that鈥檚 not going to work. What we need is a totally different set of tools for these people to facilitate that process. And so that鈥檚 why when I talk about API and all these other things, those are the tools that these guys need on top of a whole bunch of other things. Tell, make that happen. And so you have that fishing example. You can think about concerts, where you鈥檙e watching a concert in virtual reality and then you can buy merch that goes with that or other types of things. But virtual reality and augmented reality, both of those we think are actually going to be really, really interesting and enlarge spaces for us.

Jesse: Yeah, I could see that. Cause in VR or AR, you鈥檙e not necessarily using your hands, you鈥檙e not using a keyboard. So entering a credit card or entering address would be really hard. I don鈥檛 know, I鈥檓 sure there鈥檚 a way, but could you potentially say alright, you okay? Actually, a VR concert makes a lot of sense. VR obvious is like, you want to buy this T-shirt or the lead singers got whatever kind of shoes on, a blink with your left eye five times to buy now or something (laughing.) I don鈥檛 know how you make that purchase happen, but that鈥檚 where the developers are coming into play.

Brandon: Yup. That鈥檚 exactly it. And those are the kinds of things that we鈥檙e thinking through when working with other folks on there. Everything from your point to like how does the interface work? Like do I have to, I can draw a circle with my hand and then push it or something. Or being serious, you鈥檙e on different types of options. We think that鈥檚 really interesting. And then even back to the voice example, right? Imagine if someone were to just create a simple deal of the day app, right? Where a product that鈥檚 been discounted by color, five or ten percent, they would determine what their algorithm is. And someone wakes up in the morning and says, what鈥檚 the deal today? And they tell them what the deal is and they get the option to buy or not buy the product. But all they have to say is yes or no. And now you have a really interesting e-commerce business powered by voice. There are no screens. They can do that on their commute or whatever they want to do. We think that鈥檚 interesting, but it allows these developers, quote, unquote to try solve some of the problems that you mentioned, Rich, around like what do people say and like what is the purchase motion look like? Cause it, it really is not solved today in voice.

Richard: Oh yeah. And a hybrid of what voice would be, say someone鈥檚 listening to this podcast right now and you want to, we鈥檙e talking about a pretty, well not this podcast because it鈥檚 not a product, but you have a particular product we鈥檙e talking about.

Jesse: Maybe it鈥檚 health, you got some best vitamin powder.

Richard: And then you mentioned it. Hey, so if you鈥檙e into it, just say buy it now, or whatever. Something like that would just be unreal because we know how many steps that could be driving in the car or they could be, what are they going to do? Remember that? Like you鈥檙e probably too young. Back in the day when we were listening to the radio, it was like “Oh crap, they said the phone number”, there was no rewind the radio to get the phone number. That鈥檚 why everyone had to turn them into jingles. So you鈥檇 remember the number.

Brandon: Yeah, exactly. That鈥檚 exactly the point. It鈥檚 the idea of not just doing advertising, but allowing the interaction with the product to result in an actual conversion. Because there are all kinds of advertising in podcasts to your point, but you then have to remember it or write it down or come back later like that. There鈥檚 no action to be taken in the moment, especially in that medium. And that gets really interesting if you could hear an ad about the pair of Allbirds shoes, for example, or maybe someone else鈥檚 shoes. You hear the ad and through your voice assistant, you say “Add to cart” and it rewinds 30 seconds, listens through, figures out what that product was and adds it to your cart and boom, you now literally are shopping while listening.

Richard: Yeah. Or you鈥檙e a financial services company and you鈥檙e talking about finances and they say the phone number and you say “Call them”. And all of a sudden maybe it doesn鈥檛 make a conversion but it rewinds and it dials that number for you.

Jesse: So if there鈥檚 a developer out there making a voice app, you鈥檙e clearly competing against Amazon and they have all the products. What Violet would potentially enable is, all right, “I鈥檓 making a voice app and I don鈥檛 want to play with Amazon because they鈥檙e going to crush me.” But I still want to sell stuff so that that person could work with you and say, “all right, I want access to all your products. There鈥檚 like product feeds coming in from all sorts of merchants. I鈥檓 going to pick them and I鈥檓 going to build the Amazon killer, potentially.”

Brandon: Yeah. I wouldn鈥檛 even call it an Amazon killer. If we look at some of the larger trajectory of the e-commerce for a second, I mean ecommerce is growing 15% year over year or more and it鈥檚 almost at $500 billion. If that continues at the same rate over the next 10 years, we鈥檙e going to have another $500 billion to play with. A lot of money. Amazon is not going anywhere, but Amazon does what they do within the market, which we think is fantastic. What we care about is all the guys that will never have a shot, they鈥檒l never have a chance to even get their hat in the ring. Those guys ad need the products, they need tools. And those are the people that we鈥檙e trying to help them power to build their business. They aren鈥檛 necessarily going to build an Amazon killer. I don鈥檛 know if there is going to be an Amazon killer.

Jesse: Yeah, that might鈥檝e been a little overreach that hopped out there. (laughing)

Brandon: Sure, but I think it鈥檚 worth thinking about. Even for folks listening out there today, again, that鈥檚 how much more these transactions are going to shift to the Internet. That鈥檚 why we care so much about companies like 51视频 that are helping folks get online to sell their products. Because this thing鈥檚 happening, this wave is going this direction, no matter what happens. And so the people that choose to participate in it will get a share of that revenue and those that don鈥檛 are going to miss out on that revenue. That鈥檚 just how it works. And so our mission is, we鈥檝e talked about is sort of focus. Of course I鈥檓 with developers, but not just that. We鈥檙e huge on specialization. We as a company, we always talked about the two words — partner up. And often you can partner up with someone else that does something much better than you do. 51视频 does a lot of things better than we do, but we get the chance to work with you guys because it feels in some ways almost like a relay. And to be totally honest, where there鈥檚 an entrepreneur sitting at home listening to this podcast and either you鈥檙e selling products today or you鈥檙e about to come up with the next really, really great product, you need to find a way to get that thing on the Internet. You鈥檙e going to work super hard, you鈥檙e gonna pick your ad platform and you鈥檙e going to in some ways sign up with 51视频. You then hand the baton to 51视频 and 51视频 does everything that they do really, really well and runs in the second part of that relay. From there we then grabbed the baton from 51视频 because of their commitment to people like us and how they care about the developer community and where the Internet is going. We then grab at the time and we take it our distance to the final leg and I handed off to a different developer and I let him do what he does best and he then takes it and puts it at the feet of the shopper and creates a beautiful surprising and delightful experience. And then it creates a transaction. And that for us is essentially the new value chain for how we think e-commerce should work. And it is inextricably tied to partnerships that tied to collaboration and specialization and we鈥檙e really deeply committed to that.

Richard: Yeah, I mean you said so many things that I could talk like five different directions, but I鈥檓 going to totally agree with you. People should even partner with Amazon. I mean if you鈥檝e got an 51视频 store, you should have an Amazon store too, as much distribution as you can get. Great. But just keep in mind also to your point there, a little bit of this is people who don鈥檛 have a chance or the money to rank in the same way, but you have to focus on what you can do that Amazon can鈥檛 do. They can鈥檛 be human. Like you can be human. They can鈥檛 be your brand. Like you can be your brand. If you鈥檙e trying to sell the same product as other people are selling on Amazon, good luck. It鈥檚 a race to the bottom. It鈥檚 commodity based selling and it鈥檚 just the race to the end. But a brand is really the only thing that where you can control a margin because if you do a unique product in a unique way and deliver an experience that no one else can deliver, you can, I won鈥檛 say priceless cause there鈥檚 a price on some things, but it鈥檚 as close to priceless as you can get.

Jesse: I was to mirror that thought. For people listening, if you鈥檙e on 51视频, if you鈥檙e on other platforms, your platform is going to provide the website and you can sell on the web and you can connect to advertising. You could connect to Amazon, you can be on Facebook and Instagram. But that鈥檚 why at 51视频, we have an app market, that鈥檚 why we partner as well. Because there are people working on AR and VR, and a voice, and things like that. And once you build a store and you work with other partners, you now have access to that through Violet. I think it鈥檚 an awesome way to extend. And as a merchant, you鈥檙e probably not thinking: “What am I doing for VR?” Probably not doing that much. (laughing) You鈥檙e not doing anything for VR, but maybe you could say “I鈥檓 going to download Violet app and let connect”. And maybe somebody is working on the perfect VR project that they want to sell my product on it. And that鈥檚, that鈥檚 basically what you鈥檙e talking about here.

Brandon: Yeah, that鈥檚 exactly it. And to use your language, we hope that you鈥檙e not trying to think about what you鈥檙e doing in VR. Yeah. That鈥檚 actually the whole purpose of the company. But to maybe drill in there for just one second. I鈥檓 sure the questions pops: “Okay, cool, maybe I do want to think through this distribution thing through Violet and what does that actually look like? How do I use this thing? And how much the costs, what鈥檚 all entailed.” And we want to make this as easy and as frictionless as possible for merchants out there that, that are on 51视频. And all it really is, and of course going first to the 51视频 App Market, which is awesome. And once you there you can of course just download the app. I鈥檓 connected to your store and I think there鈥檚 two more steps, but all in it probably takes you about five minutes total. At the end of those five minutes, you鈥檙e able to set your rate and flip a switch. And that switch is, it basically just says enabled. And once it鈥檚 enabled, that means that armies of developers can start grabbing that product and building new experiences to sell your products. That鈥檚, it takes five minutes, costs $0, and you have total control over the pricing and when it鈥檒l cost you in your business. And so, yeah, you鈥檙e not having to go build a VR app, or even think about it, but it, it鈥檚 very much kind of a “set it and forget it” model, at least for today.

Jesse: Awesome. So everybody, there鈥檚 a call to action, go to the 51视频 App Market, connect with Violet. You don鈥檛 have to do anything right away. And probably nothing鈥檚 going to happen over the weekend. This is a long play. You鈥檙e thinking for the future. There鈥檚 a bunch of developers out there that are working on projects that may need your products, but if you鈥檙e not connected to Violet, you鈥檙e not even on their radar, there somebody else will be. This is a long play and think about, it鈥檚 a very easy thing. It鈥檚, it鈥檚 free. You connect and potentially someone鈥檚 going out there is going to make the perfect app for you depending on your product.

Richard: I love it. Especially, even just the way he worded there, Jess, it鈥檚 almost like springs come in, you鈥檙e going to go plant, you have no chance of flowers coming into backyard if you don鈥檛 plant some seeds. But just connecting that app is literally your seed planting that maybe one developer in six months does something. Maybe who knows. But over time, if you didn鈥檛 at least do that piece, you are going to get access to none of this. But if it you do that piece, you don鈥檛 have to even think about it and then you eventually could have more money coming in literally to your point, Brandon. Set it and forget it.

Brandon: Yep. That鈥檚 exactly it.

Jesse: That鈥檚 awesome. To me, and I mentioned this before, it鈥檚 basically like a product feed. So people are essentially given a product feed and I know it鈥檚 not exactly like that, but you鈥檙e sending a product feed that can now be accessed by other people. That鈥檚 the first step. Everybody, it鈥檚 a nice, you don鈥檛 have to, you can dream. But there is a nice, easy, easy takeaway from this.

Richard: Yeah, you got people working to potentially build your business that you don鈥檛 even have to communicate with and or pay out of your pocket until a sale takes place.

Brandon: Yup. I might add just a quick comment near the end because we didn鈥檛 talk about this part, but we also get the question, what happens after the transaction takes place. Someone out there bought the product in one of these cool apps? That鈥檚 great. What鈥檚 next? Do your point on the products being piece? Product features are great, but for this to really be truly “set it and forget it” when that transaction happens and has to get back into 51视频 and needs to look exactly like an order that came through the website because fulfillment matters. We can鈥檛 have separate fulfillment systems. It all needs to still be the system of record. Again, this is us being dedicated to our partnership with 51视频 and when you guys do so well and it鈥檚 that system and so we help facilitate that back in. And so if there is a transaction, it鈥檒l just show up in your habit. You鈥檒l be able to log in and you鈥檒l see and you can probably get a notification. If you have some of that set up, you鈥檒l know that the order has been placed and you can just do the exact same thing you do as if it were a purchase on your website. And that part鈥檚 really fun.

Jesse: Got It. So the order just pops into your control panel. When you get your notifications like you normally would, and Brandon, now what about, what about actual payment? Now we鈥檒l get a little technical here I guess. Who processes the payment?

Brandon: Yeah, we actually use Stripe. We鈥檙e huge fans of Stripe. They鈥檙e kind of in a very similar business model to us, just in a different industry. It鈥檚 all through Stripe. All totally secure. We of course do have to ask for bank account for example. But we do not touch that. We don鈥檛 save it, we don鈥檛 see it. That all goes through Stripe. And then those payment terms, basically, but the money is available for you with the fact that we of course have to be able to facilitate a return or exchange. So there鈥檚 a 30 day rolling basis on those funds. Cuz shoppers need that. And of course you want shoppers to have the chance to return a product because that鈥檚 big, big deal for them. You have access to those funds and we do all the split. There was no additional accounting, we take care of everything.

Jesse: Got It. So it鈥檚 Violet Stripe accounts. You guys are in a way the, the merchant of record for again, getting a little technical and then you send over a completed sale and the funding flows or follows I guess. Got It. All right. For the payment processing nerds out there, I answered your question. Awesome. I got a lot of different ideas and maybe I want to become a VR developer now, but I might be, I don鈥檛 know. I don鈥檛 know. My time might have passed for that, but awesome. Rich, any last questions here?

Richard: Oh man. I would just say, pretty much just reiterate your, or ask you, you鈥檙e saying people should just go to the app store, attach Violet and wait. Correct?

Brandon: That鈥檚 step number one. Just get it started and there鈥檚 going to be a whole bunch of new things that we鈥檙e testing right now and kind of optimizing. They鈥檙e going to roll out in the future where you鈥檒l have the ability and access to communicate with different folks and facilitate an exchange and changed the rates and all and then all the rest of that. But you are spot on in the sense that you need to get into the system now. Because these products are going to surface on the other side and there are people in a conference room staring at a whiteboard looking at the products. Okay, so what do we have to play with? How do we go spend our money and time and resources to build things based on the products that are available to us? And so that鈥檚 absolutely the time component here. You got to get in now for them to plan around that.

Richard: Yeah, so unlike the conditioning and we鈥檝e heard in the past of build it and they will come and everyone鈥檚 like, no, that won鈥檛 happen. What should probably be stated now is just build a really damn good product because if you build a good product and you connect these things, it鈥檚 actually going to benefit you because to your point, they鈥檙e all staring at the whiteboard, figuring out which one to go with. You got a cool, unique product. They鈥檙e going to probably pick that one.

Brandon: That鈥檚 exactly it. Go out there and make or build the product the world needs and they will now be a whole team of people out there trying to sell that product for you.

Jesse: Wow. That鈥檚 awesome. All right. I鈥檓 thinking about it. Everybody, you got a quick call to action. Get after it. Brandon, we鈥檙e going to keep watching. Really appreciate you being on the show.

Richard: Thanks for your time.

Brandon: Yeah, thanks guys.