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[@jackneel] The RICHEST Teenager You’ve Never Heard Of (Interview)

· 7 min read
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@jackneel - "The RICHEST Teenager You’ve Never Heard Of (Interview)"

Link: https://youtu.be/6L4e2V2E-LQ

Short Summary​

Here's a breakdown of the YouTube transcript:

Number One Takeaway:

Start learning Roblox Studio immediately and build a game. The barrier to entry is low (free software, drag-and-drop interface), the time commitment to get started is relatively small (25 hours to build a basic game), and the potential return on investment is very high (a game can generate $10k/month with a relatively small user base). The window of opportunity is closing in 2-3 years due to AI.

Executive Summary:

Josh Nanchia, a 16-year-old millionaire, reveals the untapped potential of Roblox game development. He emphasizes the ease of entry, high-profit margins, and the importance of connecting with the Roblox community. He highlights the potential to create a game and generate revenue with minimal investment and urges listeners to take action now before the market becomes saturated.

Key Quotes​

Here are 4 direct quotes from the YouTube transcript that represent valuable insights:

  1. "The best cheat code that I learned through all my experience, right? It's a little it's a little more simple, but the best cheat code is reaching out to 10 of your boys and getting them to start. Right now, the thing is once you get 10 players, and this is complete absolute cheat code that Roblox doesn't tell anyone, the second you get your first 10 players, your game will get shown to more."

  2. "The thing is Roblox will always be one, right? People are going to think like a big ass game like GTA 6 is going to beat them. Yeah, it'll beat them in revenue, but not for the creators. Because the thing about Roblox is they prioritize their creators. GTA 6 prioritizes themselves, right? They don't care about you. Roblox does, right? And that's what makes them so good."

  3. "One of our products was a Speedy Chocolate Bar, right? The dumbest thing you've ever I created the image literally writing on a notebook and then taking a picture of it, right, for that product. And that product generated 4 million in revenue."

  4. "Broke people sell their time, rich people buy their time, and wealthy people make their time...Wealthy people are the people that make systems to make their own time, right? My games run without me being there, right? I'm making money right now while I'm talking to you."

Detailed Summary​

Here's a detailed summary of the YouTube video transcript, organized into bullet points, focusing on key topics, arguments, and information.

Key Topics & Overview:

  • Hidden Roblox Gold Rush: The video explores the largely unspoken opportunity to make significant money on the Roblox platform.
  • Josh Nanchia: The 16-year-old guest, Josh, is presented as an expert and millionaire in the Roblox game development and investment space.

Josh's Background and Success:

  • Age: 16 years old (as of the recording).
  • Source of Income: Primarily Roblox, followed by AI automation agency for B2B companies, and a little real estate.
  • Monthly Income:
    • Total: Approximately $8 million (as of the recording).
    • Roblox: Approximately $5 million.
  • Roblox Experience: Started creating Roblox games at age 12, initially making a few thousand dollars.
  • Early Strategy: Reinvested early profits into marketing, hiring game developers, and expanding his Roblox presence.

Understanding Roblox & Making Money:

  • Roblox as a Studio: Roblox is a platform, not a game itself, where creators build and publish their own games.
  • Robux Currency: Players purchase Robux, a virtual currency, to spend within Roblox games.
  • Monetization: Game creators earn revenue when players spend Robux on in-game upgrades, items, passes, and other features (70% to creator, 30% to Roblox via DevEx program).
  • Competition: Players are competitive and willing to spend money to progress faster or gain an advantage.

Investing in Roblox Games:

  • Game Investing: Josh invests capital (starting small with $50 and scaling to $25-30k) into existing or developing Roblox games.
  • Revenue Potential: Games can generate anywhere from $500,000 to millions of dollars monthly.
  • Front Page Games: Roblox's algorithm prioritizes certain games, placing them on the "front page" and driving significant traffic and revenue.
  • Target Audience: The majority of the revenue is brought in by the younger generation, Gen Alpha vs Gen Z

Game Development & Going Viral:

  • Team Size: Can build a successful game (generating millions in months) with just 2-3 people (full-stack scripter, modeler, and creative lead).
  • No-Code Development: Modern Roblox game development is simplified, often using a drag-and-drop interface (Roblox Studio - free download). No coding experience required to make a decent game. 25 hours to make a game that makes 10K a month.
  • Marketing Trick: Twitter is effective for marketing Roblox games, instantly gaining a significant number of concurrent users (CCU).
  • Paid Marketing: Roblox offers paid marketing opportunities similar to Meta Ads.

Tips for Success (Cheat Codes):

  • Color saturation: The more the human eye sees, the more inclined they are to buy
  • Map size: Smaller maps are easier to build and forces players to see everything to get them to buy the product
  • Targeted ads: Tracks what the players are looking at to know what to market toward them
  • Free to Play: Make the game free to play and upsell in-game products.
  • Upgrade Passes: Offer upgrade passes that enhance player abilities (e.g., speed boosts, multipliers).
  • First 10 Players: Getting the first 10 active players is crucial as it triggers Roblox's algorithm to show the game to a wider audience.

Users and Revenue Generation:

  • 10K/Month Revenue: Requires roughly 380 consistent players.
  • Average Spending: Average player spends around $35 per month in-game.
  • User Base: Roblox has millions of users.
  • The most money is made when creators can: track what the player is looking at, use that to target the player's "wants", and then target those "wants" with a discount.

The Roblox Community:

  • Undercover Nature: Many Roblox creators keep their success low-key.
  • Community Size: Investor community has almost 900 members.

The Roblox Future and Game Development:

  • Profitability Window: The Roblox opportunity may have a 2-3 year window (as of recording) before saturation.
  • AI Game Development: AI-powered game creation tools may disrupt the industry.
  • Current Goal: Create a software to create games with 1 click and make it invite only

Financial Transparency (with limitations):

  • Cannot Show Direct Numbers: Due to Roblox restrictions, Josh can't show specific monthly dashboard data on his phone.
  • Group Revenue: Roblox shows group revenue (associated with studios) on the mobile app but requires verification.
  • Affiliates Within Each Studio: Affiliates can see the revenue and data from all the studio's groups.

Personal & Business Philosophy:

  • Giving Back: Josh expresses a strong desire to donate his personal earnings to charity.
  • Teamwork & Collaboration: The value of working with a strong, trusted team is emphasized.
  • Value of Mentorship: People and Mentors are important. Having someone you can talk to and express your vision to is important.
  • Always be yourself: When in life, always take negative things as positives to push your limits

Roblox Mafia:

  • High Pull: It is a fact that those with high pull can erase other's game completely with a simple message.

GTA 6 & Other Gaming Opportunities:

  • GTA 6: Identified as the next major gaming opportunity. Mods can be sold to players.

Future Steps:

  • Create a dev marketplace to simplify the developer hiring process
  • Create a fund to invest in Roblox