Miguel McKelvey: WeWork’s tangible problem-solving boosts valuation, AI monetization remains unclear, and storytelling is key for consumer engagement | How I Built This

Key takeaways

• The valuation dynamics of WeWork and emerging AI companies differ significantly due to the tangible problems WeWork addressed.
• Monetization of AI applications remains a challenge, leading to confusion in their valuation.
• High-quality, locally made products require effective communication to justify their premium price.
• Storytelling is crucial for consumer engagement and brand connection.
• Public visibility can significantly enhance product recognition and brand awareness.
• Small businesses often face challenges in breaking revenue ceilings despite initial success.
• Optimizing content for both SEO and AI is essential for effective customer reach.
• Diverse content formats across multiple platforms can enhance customer engagement and support.
• Unmanaged grief in the workplace has a significant financial impact on employers.
• AI scrapers are emerging as a new form of SEO, influencing information discovery.
• The evolution of WeWork provides insights into addressing real-world problems in business models.
• The AI industry’s uncertainty in business models and valuations mirrors past tech booms.
• Effective branding and communication are vital for marketing high-end products.
• Engaging narratives in marketing help brands connect with consumers.
• Leveraging public spaces for product visibility can drive consumer interest.

Guest intro

Miguel McKelvey is the founder of Unbound, a venture seeking to disrupt healthcare in the United Kingdom. He is the co-founder of WeWork, where he served as Chief Culture Officer and oversaw the architecture, design, and construction of its global shared workspaces. McKelvey reflects on his WeWork experience and parallels to today’s AI-dominated tech industry.

The valuation dynamics of WeWork and AI companies

• There are parallels between the valuations seen at WeWork and those of emerging AI companies, but the key difference lies in the tangible nature of the problems WeWork addressed.

  — Miguel McKelvey

• WeWork’s business model focused on solving real-world problems, similar to companies like Uber and Lyft.
• Emerging AI companies face challenges in monetization and valuation due to their intangible nature.
• The tangible problems addressed by WeWork contributed to its valuation dynamics.

• One of the biggest differences I see is that WeWork was a very real-world problem, it was very tangible, right, and similar to Uber or Lyft.

  — Miguel McKelvey

• Understanding the context of WeWork’s business model is crucial for comparing it to AI startups.
• The valuation of AI companies is often confusing due to unclear monetization strategies.

• The AI applications are so incredibly powerful and amazing but because they can do so much and it’s not yet clear exactly how to monetize them it is a bit confusing to understand how will they be evaluated.

  — Miguel McKelvey

The challenges of monetizing AI applications

• The current landscape of AI applications presents challenges in terms of monetization and valuation.
• AI technologies are powerful but lack clear business models, leading to valuation uncertainties.
• Historical tech booms provide context for understanding the challenges faced by AI companies.

• The AI applications are so incredibly powerful and amazing but because they can do so much and it’s not yet clear exactly how to monetize them it is a bit confusing to understand how will they be evaluated.

  — Miguel McKelvey

• The uncertainty in AI business models mirrors past tech industry challenges.
• Effective monetization strategies are crucial for the success of AI companies.
• The AI industry’s valuation challenges highlight the need for clear monetization pathways.
• Understanding the historical context of tech booms can provide insights into current AI challenges.

The importance of effective communication in marketing

• High-quality, locally made products require effective communication to justify their price point.

• You gotta do a better job at explaining why… you understand why go to your website nothing that you’ve told us is here.

  — Miguel McKelvey

• Branding and communication are vital for marketing high-end products.
• Clear communication strategies are essential for consumer understanding and sales.
• The fashion industry highlights the importance of branding for premium products.
• Effective communication can bridge the gap between product quality and consumer perception.
• Marketing strategies should focus on conveying the value of high-end products.
• Understanding the importance of branding is crucial for successful marketing campaigns.

Storytelling as a tool for consumer engagement

• Telling the story behind a product is crucial for consumer engagement.

• I think you have to tell that story over and over and over… giving your why will be what really translates to people.

  — Miguel McKelvey

• Engaging narratives help brands connect with consumers on a deeper level.
• Storytelling is an essential component of effective marketing strategies.
• Brands that effectively communicate their story can enhance consumer loyalty.
• The significance of narrative in marketing cannot be overstated.
• Storytelling can differentiate a brand in a competitive market.
• Understanding the power of storytelling is vital for successful brand communication.

Leveraging public visibility for brand recognition

• Visibility in public spaces can significantly enhance product recognition.

• I would suggest would be going to a local restaurant and gifting the pants to some of the servers… the more they’re in public people will say hey where are those pants from.

  — Miguel McKelvey

• Public visibility can drive consumer interest and brand awareness.
• Marketing strategies that leverage public spaces can increase brand visibility.
• Product recognition is enhanced through strategic public exposure.
• Public visibility can serve as an effective marketing tool for brands.
• Leveraging public spaces can lead to increased consumer curiosity and interest.
• Understanding the role of public visibility is crucial for brand marketing strategies.

The financial challenges faced by small businesses

• The business has struggled to grow beyond $200,000 in revenue despite initial success.

• For the past three years we’ve been right around $200,000 in revenue and just can’t seem to break past that this past year was pretty challenging for us and so we were down like 7% from the year before.

  — Miguel McKelvey

• Small businesses often face challenges in breaking revenue ceilings.
• Financial struggles highlight the difficulty of scaling in niche markets.
• Marketing strategies play a crucial role in overcoming revenue challenges.
• Understanding the financial challenges faced by small businesses is essential for growth.
• Scaling in specific markets requires strategic planning and execution.
• Revenue growth can be hindered by various market challenges.

Optimizing content for SEO and AI

• Optimizing content for both SEO and AI is essential for reaching customers effectively.

• It seems like tuning your the content side both for SEO and also for AI is essential… having a web page for literally every single web search you can imagine that someone might make in one of these scenarios would be really smart.

  — Miguel McKelvey

• Content strategies should adapt to leverage both traditional search engines and AI-driven queries.
• Effective content optimization can enhance customer reach and engagement.
• Businesses need to adapt their content strategies to the evolving digital landscape.
• SEO and AI optimization are crucial components of successful digital marketing.
• Understanding the importance of content strategy is vital for effective customer engagement.
• Content optimization can drive traffic and enhance brand visibility.

Creating diverse content formats for customer engagement

• Creating diverse content formats can help address customer questions across multiple platforms.

• Can you make TikTok videos that answer these questions? Can you make YouTube videos that answer these questions? Like everywhere you could have content to answer this question, you wanna be there to help people deal with it.

  — Miguel McKelvey

• Diverse content formats can enhance customer support and brand visibility.
• Strategic content creation can improve customer engagement across platforms.
• Businesses should leverage various content platforms for effective communication.
• Understanding the role of diverse content formats is crucial for customer engagement.
• Content strategies should focus on addressing customer needs across multiple channels.
• Effective content creation can enhance brand recognition and consumer loyalty.

The economic impact of unmanaged grief in the workplace

• Unmanaged grief in the workplace costs employers a significant amount annually.

• Unmanaged grief in the workplace costs employers you know $75,000,000,000 a year and up so like it’s a huge huge opportunity.

  — Miguel McKelvey

• The financial impact of grief on workplace productivity is substantial.
• There is a significant market opportunity for grief-related services.
• Understanding the economic implications of unmanaged grief is crucial for employers.
• Addressing grief in the workplace can enhance productivity and employee well-being.
• The financial cost of unmanaged grief highlights the need for supportive workplace policies.
• Employers can benefit from addressing grief-related challenges in the workplace.

The role of AI in digital marketing and SEO

• AI scrapers are becoming the new SEO, influencing how people find information.

• The AI scrapers are gonna be what matters right that’s that’s the new seo.

  — Miguel McKelvey

• AI is playing an increasingly important role in digital marketing strategies.
• The shift towards AI-driven content visibility is reshaping SEO practices.
• Understanding the impact of AI on digital marketing is crucial for businesses.
• AI technologies are influencing how information is discovered and consumed.
• Adapting to AI-driven changes is essential for effective digital marketing.
• The evolution of SEO highlights the growing importance of AI in content strategies.