My First Million – Doug DeMuro: How A YouTube Car Reviewer Sold His Company For $40M

Intro

In this episode of “My First Million,” the hosts interview Doug DeMuro, a successful YouTuber and journalist known for his quirky personality and car reviews. Doug shares his journey of building a YouTube channel with over 4 million subscribers and eventually selling his website, Cars and Bids, for $40 million. He discusses his approach to creating quality content, the importance of relatability, and the challenges and successes he has faced along the way.

Main Takeaways

Doug DeMuro’s Journey to Success

• Doug DeMuro started as a YouTuber and journalist and now has over 4 million subscribers on his YouTube channel.
• He is known for his quirky personality and fashion choices.
• DeMuro’s success is largely due to his relatable and trustworthy personality.
• Launching the channel in late 2013, Doug DeMuro inserted his videos into articles he wrote for Jalopnik, which drove traffic to his YouTube channel and put him in the algorithm, leading to more subscribers.
• Doug’s YouTube channel took off when he switched to doing car reviews instead of videos with his own cars.
• Car reviews, especially new car reviews, are where the money and audience are.

Building Cars and Bids

• DeMuro launched Cars and Bids, a website for car enthusiasts, and sold the majority of the business for $40 million to Churning Group.
• DeMuro’s success was not due to a specific strategy, but rather his focus on producing quality content.
• He prioritized showing the little ins and outs of the car people are actually going to buy, rather than just focusing on the driving experience.
• DeMuro’s Doug score, a rating system for cars, has become valuable for car buyers but could be more robust and organized.
• DeMuro plans to specialize in creating videos while letting others handle the database and sorting of the Doug score.

The Success and Challenges of Creator-led Businesses

• The founders of the website Bring a Trailer saw an opportunity to create a modern version of the site that focused on more recent cars.
• The website has expanded to include more high-end cars and is starting to compete with Bring a Trailer in that market.
• Business model: sellers pay nothing, buyers pay 4.5% of total purchase price, with additional revenue from shipping and inspections.
• The website has generated over $75 million in gross sales in 2021.
• The Trinning Group, who specifically work with creator-led businesses, acquired the company and this was a huge relief for the founder who feared that a PE or VC company would come in and change everything.

Building a Personal Brand as a Content Creator

• Creating a unique character and persona can set content creators apart from others.
• Being likable and having good fan interaction is important for content creators.
• Building a persona and catchphrases can help content creators stand out.
• Examples of successful “heel” characters include Floyd Mayweather and WhistlinDiesel.
• WhistlinDiesel is a car content creator who does things that make people hate him, such as destroying expensive cars and off-roading a Tesla with giant wheels.

Summary

Doug DeMuro’s Journey to Success

Doug DeMuro started his career as a YouTuber and journalist, eventually amassing over 4 million subscribers on his YouTube channel. His quirky personality and fashion choices have made him a beloved figure among car enthusiasts. DeMuro’s success can be attributed to his relatable and trustworthy personality, which resonates with his audience. He initially gained traction by inserting his videos into articles he wrote for Jalopnik, driving traffic to his YouTube channel. Switching to car reviews, especially new car reviews, proved to be a turning point in his career, as it attracted a larger audience and more lucrative opportunities.

Building Cars and Bids

DeMuro ventured into entrepreneurship by launching Cars and Bids, a website catering to car enthusiasts. He later sold the majority of the business for $40 million to Churning Group. DeMuro’s success was not a result of a specific strategy but rather his focus on producing quality content. He prioritized showcasing the little details and quirks of cars that people are likely to buy, rather than solely focusing on the driving experience. His Doug score, a rating system for cars, has become valuable for car buyers, although he acknowledges the need for further improvement and organization. DeMuro plans to specialize in creating videos while delegating the database and sorting of the Doug score to others.

The Success and Challenges of Creator-led Businesses

The founders of Bring a Trailer identified an opportunity to create a modern version of the site that caters to recent cars. Over time, the website has expanded to include high-end cars and is starting to compete with Bring a Trailer in that market. The business model involves sellers paying nothing while buyers pay 4.5% of the total purchase price, with additional revenue generated from shipping and inspections. In 2021, the website has achieved impressive gross sales of over $75 million. The acquisition of the company by The Trinning Group, known for their expertise in creator-led businesses, provided relief to the founder, who feared potential interference from private equity or venture capital firms.

Building a Personal Brand as a Content Creator

Content creators can differentiate themselves by building unique characters and personas. Being likable and engaging with fans is crucial for maintaining a loyal audience. Creating catchphrases and developing a distinct persona can help content creators stand out in a crowded market. Some successful creators have embraced the role of the “heel,” intentionally provoking controversy and polarizing opinions. WhistlinDiesel, a car content creator, has gained attention by engaging in destructive acts with expensive cars, evoking strong reactions from viewers. Building a personal brand requires careful consideration and deliberate choices to resonate with the target audience.

Conclusion

Doug DeMuro’s journey from a YouTuber and journalist to a successful entrepreneur showcases the power of relatability and quality content in building a loyal following. By focusing on producing informative and entertaining car reviews, DeMuro has amassed millions of subscribers and sold his website for a substantial amount. The success and challenges faced by creator-led businesses, as exemplified by Cars and Bids, highlight the importance of understanding one’s audience and continuously improving the offering. Building a personal brand as a content creator requires authenticity, engagement with fans, and the ability to stand out in a competitive landscape. Overall, Doug DeMuro’s story serves as inspiration for aspiring content creators and entrepreneurs in the digital age.