Cody Schneider on AI's Disruptive Impact in Business

Brief Summary
In this fast-paced, future-focused episode, Jeff Dudan talks with Cody Schneider, the founder of Swell AI, about how artificial intelligence is completely transforming content marketing, local search, and the future of media. From running print-on-demand side hustles to helping companies scale digital content with AI workflows, Cody shares the real-world tools and strategies companies need to stay relevant in 2025 and beyond.
Key Takeaways
- AI is changing marketing faster than most businesses realize: Companies clinging to outdated strategies risk becoming irrelevant as consumer behavior shifts to social-first, AI-filtered discovery.
- Swell AI automates content repurposing at scale: Cody’s platform turns long-form video, audio, and podcast content into SEO blog posts, newsletters, social clips, and more—all in one workflow.
- Gen Z is searching on TikTok, not Google: Younger audiences trust content from creators over Google Maps and websites, signaling a major shift in how businesses must position themselves online.
- The future of SEO is AI ranking, not just backlinks: Tools like Perplexity AI are indexing trust based on total digital footprint, not traditional ranking factors.
- Volume beats perfection in content distribution: Cody shares how some clients run 30+ TikTok and Instagram accounts to test and amplify viral clips across platforms.
- AI models trained on top-performing content will replace generic content generation: Future tools will source only from viral, high-performing content to improve relevance and engagement.
Featured Quote
“Find a skill you can learn online, sell it online, and scale it. That’s the foundation of building something real.” — Cody Schneider
TRANSCRIPT
AI Marketing Trends with Cody Schneider
Jeff Dudan (00:02.766)
Welcome everybody to the home front. I am Jeff Duden and I'm here with Cody Schneider today and we are super excited to learn about AI digital marketing and some of this fast dynamic changes that are going on right now across all sectors of business. And Cody's got an incredible background he's going to share with us. Welcome Cody.
Cody Schneider (00:25.326)
Jeff, thanks for having me, man. Super excited to be here, so.
Jeff Dudan (00:28.334)
Yeah, awesome. Thanks for being on. Cody, we always like to start. Can you tell us a little bit about your background, kind of where you grew up and who Cody Schneider is?
Cody Schneider (00:38.734)
Yeah, yeah, yeah. So I'm from the Northwest originally from the small town up in North Idaho called Coeur d 'Alene. It's about two hours from the Canadian border. Yeah, spent a lot of time there and then a little bit of time in Denver, Colorado during high school, but that's kind of the origin. Grew up in an entrepreneurial household. There was no real way that I was going to escape that. Both parents were just kind of profiteers. I don't know. That's the only way I really know how to describe it.
My dad did kind of like just logistics for forever. So brokering a lot of like international like products into my mom was in the medical space. So yeah, I've had real jobs and have also probably had way more not real jobs throughout my career. But the big thing that I'm doing now and kind of building is in this AI like media space. But before that, I worked in the e -comm world.
did a lot of stuff there in like programmatic SEO. So basically what that is, is building out like hundreds of thousands of landing pages for these like large brands. And then also worked in a, or at a B2B digital marketing agency where we worked with like manufacturing goods companies. So think about like people that manufacture like doors, windows, wood products, anything for like home building. That was kind of our target customer. And what I did there was help them.
transition from like traditional media and traditional marketing into digital marketing and really did all their digital strategy stuff. And then that, I don't know how it led into working for like early stage startups. So I ended up out in San Francisco working for a company called Rupa Health. We ended up, or I was employee six there and ended up helping take them from a $20 million valuation to $110 million valuation in about six months.
Uh, one of the things we did there was basically just like spin up this massive media arm. So like podcasts, live classes, chopping that up in the clips, distributing in the cross social channels, writing blog posts, et cetera. You know, you, you name it, we probably did it. Um, and then building out the team and kind of infrastructure and the workflows and processes around that. So that's kind of what I'm obsessed with is I see where the market's going for like most companies is they have to create some type of.
From Screen Printing to B2B SaaS: Cody’s Entrepreneurial Journey
Cody Schneider (02:56.046)
digital media component of their business if they want to stay relevant. And so we're really looking at and exploring, you know, how are companies doing that? What are the tools they're using and what really what are the workflows that they're building and the processes they're building based off of those tools. So yeah, happy to dive deeper on any of that, but that's kind of the high level. So.
Jeff Dudan (03:16.046)
When you were growing up, what were your platforms of choice?
Cody Schneider (03:18.574)
Yeah. Yeah. So I learned graphic design pretty young. Um, I had this, uh, art teacher who taught me how to screen print t -shirts. Uh, and then from that, I took a Photoshop illustrator class and then I was just basically hawking bootleg band t -shirts and anything else that people wanted to buy, like throughout the school and then kind of built up notoriety, uh, within that. Um, and you know, for me, it was like this like aha moment. I remember I sold this, like, it was like a, uh,
roller hockey club, like 25 shirts. And I bought them at Michael's for, I think it was like, you know, at the time, like 25 bucks. Um, and then, uh, yeah, like ended up selling it to him for like a couple of grand or something. And I was like, this is a no brainer. Like, why wouldn't I do this all day long? Um, so yeah, that, that actually is how I ended up in e -commerce. I got into the print on demand world really early. So I was doing graphic design work, figure out how to do data analytics on these platforms like Etsy. Um, and what I mean by that is basically signed.
Jeff Dudan (04:02.798)
Yeah.
Cody Schneider (04:14.574)
like finding best -selling products that were on those platforms and then creating, uh, like similar products based off of what was performing well, and then using these, uh, outsourced companies to print, uh, and ship and do all kinds of the production of, uh, those goods. Um, but yeah, that was kind of the, my origin into all of this was really that I, for a lot of people, I feel like it's the same. They like sell sweatshirts or t -shirts, and then somehow they end up in B2B software, which is the most ridiculous thing, but.
Jeff Dudan (04:43.662)
Yeah, well, look, it goes a couple of ways. So when I was growing up, all of our side hustles were, you know, we pressure washing or service type businesses, washing cars, things like that. And then my kids, as they grew up on Etsy, I got a kid, you know, 3D printing aftermarket RC car parts and selling them on Etsy and, you know, seeing what cars are coming out. And then before the manufacturer could make all the accessories, they would design some.
Cody Schneider (05:02.798)
Love it.
Jeff Dudan (05:12.398)
on some CAD software and then print it and then people would come and buy it. And, you know, it's a lot of parents are saying, looking at what their kids are doing online, but man, it's these side hustles turn into real material advantages, especially when it comes to demand generation, understanding how to just make money on the internet and do these types of things. So I'd like to talk a little bit about AI and
Cody Schneider (05:28.558)
100%.
Jeff Dudan (05:42.03)
You know, I've been traveling a lot lately and I've been going to different masterminds and different groups. And I've just come to believe that marketing is changing faster than anybody really understands in terms of how customers are acquired, how the customer journey is automated, how content's produced, where it's placed, how awareness for things.
is being generated in consumers' minds, even though they might have not thought they were a buyer and suggested it. It's really psychological. It's really powerful. Where is your head with that? I mean, how fast... If I'm a business and I've been marketing the same way for the last 10 years, but I've been making incremental changes in my business. I'm going to do a blog. Maybe I can add a podcast.
I still have a diversity of lead sources. I'm advertising on these different platforms. I think a lot of that's going to change really, really fast for huge swaths of the economy. What's your view on that?
TikTok vs Google: Why Gen Z Searches Differently
Cody Schneider (06:46.798)
Yeah, I mean, I think it's redefining like any base technology changes the constraints, right? And like, this is a base technology. It's just like what mobile did to like how people discover things previously. Like traditionally, before we had the iPhone and the phone in everybody's pocket, it was like you would do a search on desktop and what you needed to do was way different than, you know, when mobile happened. The same thing is happening here. I think the biggest, like what I'm...
I'm a data junkie, right? So like, I'm just looking at like the trends that are naturally happening and adjusting based on that. So like some of the things that we're seeing, especially when it comes to like local or small businesses or service businesses that are in specific geographies is a majority of people are starting to use social is the way that they find those businesses because they don't trust Google maps. They don't trust like Google. Um, if you look at like the data on Gen Z in particular, a majority of their searches start on like Tik TOK or Instagram.
to find companies that are in their geography, especially when it's like anything that's food, service companies related, it's like that's the origin of their search and then maybe they go to another place to find contact information, et cetera. So just thinking about that and that adds a larger shift in the mindset of the consumer. And it kind of makes sense, right? There's so much spam that exists in these traditional channels, like looking at Google.
Like, again, I started in the SEO world, like majority of searches that are related to like HVAC companies, is some guy in the middle of nowhere Arkansas that has 50 different websites that he ranks for like all these tier two cities across the US, right? So he's just like, capturing leads and then selling those to like local HVAC companies. In contrast, I think people are starting to understand that. They're dissatisfied with that experience.
And what they're looking for is more of a human connection that has a face. So if, you know, here's Sarah and she is like, you should go to this restaurant. I had an unbelievable experience. You know, it's in Denver, Colorado, blah, blah, blah. She shows you like the food and the ambiance and that like you're here's this person that is like, you can directly connect to that. If you have a bad experience, you're like, Oh, well, I don't trust Sarah anymore. Not some, you know, person behind a website that I have no idea who they are. So I think that's just like consumer preferences are changing.
Jeff Dudan (08:38.99)
That's right.
Automate 50% of Your Workflow in 72 Hours with AI
Cody Schneider (09:07.63)
I really depends on the, the industry that you're in. Like if you're in B2B in particular, like we're just seeing podcasting be this unbelievable, like distribution mechanism for these companies, because you can have the founder of the company or the CEO of the company, you know, one hour a week, they sit down and they talk with an industry expert about a topic that they know their customer is going to find interesting and relevant. And like, that's all the mental energy they have to expand.
or expend and then they take, we take that long form piece of content. You chop it up into clips for social. You make blog posts based off of the insights, the key takeaways, you write social posts for LinkedIn and Twitter and wherever else your target customer is. And suddenly like your entire, your marketing team has all of the marketing content that they need for an entire week. Right. And so I think that like those, these things are how we're seeing kind of the market change, but it really just depends on like the industry that you're in.
Are you local? Like, are you national? Are you selling B2B? Is a long sale cycles? Is it short? Is it, um, you know, purchasing decision that we could talk about, like kind of all of those different ways that we're seeing these AI tools use. The biggest thing that I would say, just to kind of frame this conversation is like for a lot of companies that we talk to, they're like, Oh, I'm going to change my whole, like, you know, internal workflow and redesign. You know, it's like this almost like massive adoption and like, we're just like, Whoa, whoa, whoa. Stop. Like, first off, like, what are you doing right now?
What can we automate away? And a lot of the times like 50 % of a company's workflow can be automated away with these AI tools. So, okay, sweet. That can be spun up in three days and in 72 hours, you just automated away, you know, 50 % of this like time consuming task. And so that can be a massively just like instant, you know, impactful thing that these companies can do. And so anyways, I always try to kind of preface this as like, that's like a great jumping point for these conversations around this stuff. So.
Jeff Dudan (11:01.358)
You mentioned TikTok and Instagram. What's your experience on Snap?
Cody Schneider (11:08.142)
Yeah, snap. My problem with snap, um, is like, it's not like personally, it's not used as a search engine is the biggest thing we've seen really great results on the ad side. Um, in particular, uh, like, I mean, just incredibly cheap advertising. There's actually really cheap advertising on Twitter right now. It's kind of a cesspool, but like you can get just like, I mean, we've seen some ads that we've ran on Twitter get like 0 .0001 cent clicks. Uh,
Jeff Dudan (11:21.39)
Right.
Cody Schneider (11:37.774)
to the site, right? And it's like, the traffic is like not super targeted, but like, I can't get, you know, for, I can get a thousand people to go to a website for like one cent basically is the idea. Like that's like mind blowing, right? Um, so with Snap, I think about that, like a lot of the times it's like, the challenge is that the demographics of the, of the site are, uh, not as robust as these other places. Like I can get a really broad spectrum of people on Instagram, on Tik TOK they've got, you know,
Uh, from a psychographic and a demographic standpoint, it's a way broader. Um, but I honestly love to learn, like, if you guys are experiencing, like seeing some success on snap, I think the biggest thing I've seen it be a really good at is like lead Jen for like internet money, like how to make like, you know, start your first business, that type of thing. Um, I have some friends that they ran a show on snap and it was like, literally they just interviewed, interviewed like people about their companies. And then it was like into a training program for them. But yeah, just kind of.
Jeff Dudan (12:20.206)
That's right.
Cody Schneider (12:36.846)
sharing what I know.
Jeff Dudan (12:37.742)
Yeah, I was in an event last week and a big YouTuber was there, a couple big YouTubers were there and they were talking about Snap and that it's one of the easiest places right now where they're making a lot of money on their content. Yeah.
Cody Schneider (12:52.27)
Totally, totally. I know their RPM is super high, like the payout that they're getting to the creators, cause they're trying to secure them away from, I mean, everybody's playing this game, right? It's like, why is like Elon Musk courting Mr. Beast to come on Twitter and like post to shows there. Like he's giving him these exclusive advertising rights. And like the reason for that is because they're realizing like, if we don't have these mega creators on platform and aren't paying them these high RPMs, like we just don't have.
Jeff Dudan (12:57.358)
Mm -hmm.
That's right.
Cody Schneider (13:20.398)
the staying power with our user base. So.
Jeff Dudan (13:23.694)
Yeah, for sure. Another thing that was interesting to me, who would you think the third largest search engine is?
Cody Schneider (13:33.102)
man, I would say Pinterest just off the top of my head, but yeah, totally. I a hundred percent see that. I mean, it's where people go, like you start in two places to buy products, right? Especially if it's like your transactional activity, like it's Google or Amazon, right? Um, we always looked at Pinterest. I did some work in another space. Uh, and people, that's where they like plan future purchases. So it's kind of this like, you know, up the funnel from like that. I'm not trying to make this purchase decision immediately.
Jeff Dudan (13:36.974)
Amazon. Yeah. Yeah.
Amazon Is the #3 Search Engine: What It Means for Content Creators
Cody Schneider (14:01.838)
But the Amazon totally makes sense. I think that's super interesting. Actually, I know that a majority of ad spend dollars have gone away from Google shopping ads to their my friend works for like one of the major Amazon like marketing consulting agencies. And she's like, we're every year we just get like 20 % more of the budget that they have allotted for like paid ad spend is being dedicated to Amazon in particular. So
Jeff Dudan (14:02.542)
Right.
Jeff Dudan (14:06.318)
Yeah.
Jeff Dudan (14:27.406)
Yeah, yeah, I think so. What was said was you go to Amazon and put in a search for something that you want to create a product around and then don't go to the five star reviews, go to the two and three star reviews because those are the reviews that are going to tell you what people didn't get from the product that they bought. So it'll identify the gaps in the market just by saying, hey, you know, I wish it would have had.
more of this or I wish I would have had more of that. And then you can target a product to those users right there. So just interesting stuff, man. It's all out there if you, you know, so much more. I don't know if you ever read the book, How Google Works. But it was how basically, you know, how they built Google. And they identified very early that they needed creatives. And so like just massive numbers of high level creatives there.
Cody Schneider (15:07.278)
No, I haven't.
Jeff Dudan (15:23.63)
And really with AI coming around now, and so now, yeah, it used to be like, OK, well, spend 10 years learning how to code, but spend all this time learning how to do this well now, or even graphic design. Right? Kid Rock was on Theo Vaughn, and he's like, let me show you this picture I made. I asked AI to make me with this, with that, and the other thing. And it was a beautiful picture, right? And it took a minute. And so now it's coming back to the creatives who are.
Cody Schneider (15:35.566)
changing the entire group.
Cody Schneider (15:42.83)
No, it's crazy. 100%.
Jeff Dudan (15:52.334)
who know how to ask the right questions or who can think more broadly about how to use these tools. Because what I think Google needs is they need more money. They need more money. They don't have enough money. So it's playing right back.
Cody Schneider (16:08.59)
I don't know what is going on over there. It's like the biggest fumbling of the bag I've ever seen. It's actually crazy. Like we're talking about just like with this whole AI piece, like Google has been years ahead of all of these companies. And right now, like they can't release a product that's stable that we can even use. And we build on, on top of all of these platforms, right? Like anything that we can get our hands on, we're incorporating into the tools that we're building. And like, it's the most insane thing to me. Like this is like,
Jeff Dudan (16:16.238)
What's up?
Cody Schneider (16:38.382)
Google is one of the most profitable money printing companies that's ever existed. And they just have so much atrophy at the company that they can't actually get products out the door that like consumers like really want to use. And it's just crazy to see this happen. And these start, I mean, it's classic though, right? Where it's like you have a smaller, nimbler company that can navigate and change course like way faster. And so because of that, they end up winning, but it just, it's insane to me because like they've had deep mind for years. They've had all of these like,
you know, sub organizations within the larger ecosystem of like alphabet and Google and all of they they've almost just like, you know, hamstringed all of them until now when they're seeing this existential crisis. It's like a, yeah. I mean, I think it's going to be written about like if they don't in the next like two years solidify themselves as being one of these big players, like their market share is going to be absolutely eaten up and eroded. So that's just personal opinion based off of what we're seeing kind of on the front lines, but yeah.
Jeff Dudan (17:35.406)
Well, so, you know, fascinating that you say that. So I've started using a tool called perplexity. Are you? No. Oh, it's so good. Yeah, I mean, I thought you said no good. And I was like, well, I can't use I can't use that anymore. No, but like, it's great, you know, and basically what it does is it takes.
Cody Schneider (17:42.99)
So good. Yeah, yeah, it's so good. We're all about it. Yeah.
Oh no, yeah, yeah, yeah, sorry, no. No. It's great.
Why Google Is Losing Ground in the AI Race
Jeff Dudan (18:01.742)
the searches, but then it makes sense of the searches. So if you're, like if I was researching you on perplexity, which somebody did, and I got this great write out on you, and it was, and it wasn't just a bunch of rando facts, right? It was a, it's really, how do you use it?
Cody Schneider (18:04.302)
100%. 100%.
Cody Schneider (18:18.574)
Yeah, we use it for a lot of similar stuff like research or just aggregating information. For example, I'm doing some consulting for a company right now. They're in the fine art space and they wanted to basically create a directory of, I think it's close to 20 ,000 galleries that are in the United States that sell fine art and then make a landing page for each of them. So we're using Perplexity's API to basically like...
Jeff Dudan (18:25.518)
Mm -hmm.
Cody Schneider (18:44.654)
collect all the information that we can find related to the gallery's name, pulling that back into a database and then writing a blog post based off of the data that we collected from Propuxity. And what we found is that like, I mean, that used to be, if I wanted to do this, like with a team of people, that's like 50 people all offshore that I'm managing, like, it would probably take six to 12 months and we're going to do this in like 30 days for them. I mean, it's the most.
Jeff Dudan (18:49.39)
Right?
Jeff Dudan (18:56.334)
Yeah.
Cody Schneider (19:11.694)
Like even saying it feels unreal like it feels like cheat codes. So yeah
Jeff Dudan (19:16.526)
Yeah. Yeah. I mean, but like that goes right back to the point is that and here we are just cracking the door into broadly distributed AI and people creatives and then people that are in the right position are taking advantage of it in these ways. And if you're a if you're a $10 million HVAC business and you've been doing it the same way,
Cody Schneider (19:29.742)
100%.
Jeff Dudan (19:45.998)
You don't have a bunch of creatives. You know, you're using standard tools. You run a tight business. It's a nice, profitable business. I think things are just going to start getting away from people, and they're not going to figure out. They're not going to be able to figure out how they're not winning anymore on some of these things.
Cody Schneider (19:59.982)
Yeah, I think that's a part of it. I mean, with perplexity, like what we've seen, because we've been thinking about like, okay, how do you rank on perplexity? Right? Like how do I show up in the result for like somebody does a perplexity search? And so the early data that we found, and it's still like early days with all of this, but what we found is that like the larger, like digital mass you have on the internet, the more likely you are to show up in these searches for the AI, right? So when we think about like how the AI is trained,
Jeff Dudan (20:11.31)
Okay.
Cody Schneider (20:28.078)
It's basically just like scraping all of the available internet or all of the available information on the internet and then has this massive corpus of data that it's training on top of. And so when you get like our search result back, say when you're using perplexity, what it's doing is it's basically pulling it's like general knowledge of information from everything that it's scraped and then reporting, you know, Hey, we think these five companies are the best results for, you know, XYZ location, right? Um,
So how do you show up more often like in that search when somebody searches HVAC Denver as an example, it's just like having more content out there than everybody else like about doing HVAC or anything related that's in that like to that niche. And so that's what we're just seeing in the data. And it makes sense kind of logically like based off of how these AI models are trained. Like, of course, like if you imagine it, like you have 50,
You have a hundred, you know, a hundred percent of a database and 50 % of that is based off of XYZ company. And then, you know, you make a query related to that and there's these other cut 10, you know, or we'll say five companies that take up that other 50%. So they're each like 10 % of that source data. Of course, it's going to reference the one that's 50 % that it has the most training on top of, right? Like if that's where it's going to go, because it looks at me.
It looks at the information that's available in public for that company as being the measurement of trust that that company is real and like it should report that as being the best answer to the search results. So anyways, it's still super early, but something I wanted to throw out there.
Jeff Dudan (22:06.19)
Yeah, so what's the path to profitability for a company like Perplexity? I just started hearing about it. A couple of really high -end conferences where executives were talking about how they're saving time and, you know, everyone... Is there a conference that exists now without your top 10 AI tools that you're using, right? Yeah.
Cody Schneider (22:22.19)
No, I mean, it's every industry because I, it feels like a, you know, like a meteor hitting earth events, right? Like it's like every, I think for a lot of people, like they're super afraid, like, is this going to replace my job? Is this going to make my company, you know, go under like these types of, I don't think it's happening that fast. Like just based off of what we're seeing, especially in like our enterprise, like sales, they like want to use this. They're still trying to figure out how to use it, how to get their teams to use it. And like the biggest thing is like the lawyers, right? Like.
Jeff Dudan (22:28.43)
Yeah.
Cody Schneider (22:50.606)
We've been in the sales deal, like a cycle right now for like nine months with this company that you would know the name of. And like for them, like we've been talking to their lawyers, like just like, okay, who owns the data? How is the data trained on? Where does the data go? Show me your data pipelines, like all of these things. Right. And so I think that there's going to be a way slower period of adoption for these companies, just based off of like the interactions that we're having.
I could be totally wrong, but that's kind of what we're seeing from our sales flows.
Jeff Dudan (23:23.342)
Yeah, lawyers will slow everything down.
Cody Schneider (23:25.645)
100%.
Jeff Dudan (23:29.326)
But back to the connection I'm trying to get to is perplexity AI is free. And I don't know if they have a paid, but you just go right to it and you put in the information. You ask the right question. You get a great answer. So people are saying, I'm using this instead of Google. So now you're going to get a mass of people using this. And then Google's not paid. It's still free.
But then the ads are going to come, and then people are going to be paying to get themselves to show up there. And it's just going to be Google 2 .0, right?
Cody Schneider (24:04.526)
I think that's probably the path forward. What we've been seeing, like ads are really not good from what we've seen within chat bot UIs. There's a lot of, we have some friends building companies, like super small scale in comparison to perplexity. But like what they found is it's like, it's hard to serve ads in the traditional way where it's like a text ad based off of like whatever the question keyword that people asked.
Jeff Dudan (24:14.35)
Right.
Cody Schneider (24:29.934)
So what they found to be more effective is having affiliate relationships with like companies so that when they send that traffic to the site, they get like some type of commission based off of the traffic that they send. So I could see something like for a perplexity where that's how this relationship is. It's like, okay, yeah, it's pulling this general knowledge from the internet. And then it has all of these affiliate, uh, like relationships with every company or like every tool or service or software that it, um, like shows up.
and then any of that traffic that it sends off of its platform to you, you pay them back some type of like commission, right? Basically, totally.
Jeff Dudan (25:06.254)
Okay, so just like a toll booth, just like, just like a kind of like it used to be like a pay not a pay per click, but a paper. Yeah. Yeah, kind of a yeah, kind of paper visit. I'll and then you can bid it up. Yeah, then you bid it up and then they'll serve you they'll serve you up more. Yeah.
Cody Schneider (25:13.55)
per action or whatever. Yeah. Yeah. Yeah. Totally. And I think that, um, for like a lot of totally, totally, totally, totally, totally. But I, you know, I, I hope that's where it goes personally. Cause I just think that, um, like, I don't, I don't know if I love the ads, uh, like I think there's a better way to do these types of, of that. Like, like if I could have perplexity convincing somebody,
that like my product is the best product for the query that they just made. So it's like almost doing sales for me. And it's like doing that in real time, like in a chat bot format, like I would pay all day long for that. Right. Like, and it has the capability to be able to do that. So what's stopping, you know, a huge, like, you know, like any, but, you know, anything from like Procter and gamble, like what's the best blah, blah, blah toothpaste. Right. And, or like, you know, the best all natural toothpaste and then.
Jeff Dudan (25:55.694)
Right.
Cody Schneider (26:10.446)
It's upselling a brand that Procter and Gamble owns, right? Like that this is the best, you know, like that, that is something that I could see definitely happening, like with the tool and it's like current form, but I don't really know. I think right now, like what, you know, the rumblings we're hearing with all these AI companies is there's so much funding and liquidity to put money into them that they're just like, get as big as you can as fast as you can. So like perplexity is growing at like a stupid rate right now. And they're.
Just, I mean, they raised like another round of funding. Like I think it was like four months after their previous round, which is like unheard of in venture capital. And it's like largely still like, yo, we just like, we're growing so fast. Like we ha like, we can't even keep the lights on without more money. Right. Um, and so for them, like it's just going to be like, how much of Google's market share can they eat up? And then once they kind of start to see that plateau, like that hockey stick growth is starting to like, you know, reach its ceiling. Then at that point it's figure out profitability and Google did the same thing. Right.
Like they, they bought double click. It was like, I want to say like probably four or five years into their initial, uh, uh, like their initial launch, like they weren't even profitable for the first, like five years until they introduced, you know, bidding on, uh, uh, self -service bidding on keywords. And then you could actually show those ads up, but that was an acquisition of a separate company that they basically rolled into them. So I think that we're going to see, you know, history repeats itself.
Time is just a flat circle and we're gonna see that kind of same thing occur here. It might be a little bit different, but there's only so many ways to make money on the internet and like ads is one of the big ones, right? So.
Building Swell AI: Automating the Entire Content Engine
Jeff Dudan (27:45.07)
Yeah, you know, it's interesting though, if you look at each, I mean, ultimately, there's not a lot of winners. I mean, it's, you know, you got the thing. Yeah, I mean, yeah, you got YouTube, you got Google, you got Facebook, you got Instagram, you got, you know, then what, right? There's so, so we'll see if, you know, AI gives some people a toehold, who can break out first and maybe, you know,
Cody Schneider (27:51.374)
100%. I mean, it's Pepsi and Coke, right? Like they own 80 % of market share.
Cody Schneider (28:04.59)
Totally.
Jeff Dudan (28:13.294)
get a big piece, bite a big hunk of Google, and then they'll buy it and kill it.
Cody Schneider (28:18.926)
100%. That's probably what will happen. I know Google is talking about releasing, it's called SGE. I think it's like search engine engagement. I can't remember what it stands for, but it's basically their version of perplexity where it's like pulling in the results and then citing sources and that whole thing. Again, it's not live. It's been eight months of them talking about this, like where are we? So, and in that timeframe, perplexity is, you know, they've triple tripled in the last six months. So.
Jeff Dudan (28:41.87)
Yeah.
Jeff Dudan (28:46.446)
Yeah, well, either be the best or get in the best way. And they'll open the closet. They'll just push Vine over to the side and put it right in there and close the door for another decade. But yeah. So hey, well, Cody, tell us what you're doing now.
Cody Schneider (28:50.414)
100 % exactly.
Cody Schneider (28:54.83)
Hahaha!
Cody Schneider (28:59.406)
It's ridiculous. It's ridiculous, but...
Cody Schneider (29:04.942)
Yeah, yeah. So right now we're building this company called Swell .ai. It helps you turn long form content like videos, audio into blog posts, newsletters, clips for social. We're also just starting to launch social scheduling. This will be out in about a week or two. Basically, like how we're seeing companies use us is they build their entire kind of like content marketing engine on top of us. So like our goal is basically...
Instead of you needing 10 different content people to run all of these different sources, you can have one 10 X marketer and they're just sitting on top of the tool like this. Um, basically creating all of the content that you could ever want for your brands. Um, so we work with, we actually started out with podcasting. That was like the initial kind of wedge that we did into the market. Uh, we're starting to work now, uh, more and more with, uh, like traditional media broadcasting, that type of thing. And then also, um, with, uh, like B2B.
Jeff Dudan (29:53.006)
Right.
Cody Schneider (30:01.262)
companies that are all of them are spinning up some type of like show that's talking about the industry and we're helping them kind of do that. But our big thing, what we're focused on is like helping people build workflows where the analogy I keep using is like, Hey, provide raw materials to the AI, which is in the form of, you know, 45 minute video. And then from that you have templates that are, you know, created that just automatically get generated based off of that source file. So the, you know, the analogy is take.
crude oil and we turn it into plastics and gasoline and diesel and aggregate and all these other forms that you could want out of that, out of that initial piece of content. So.
Jeff Dudan (30:33.71)
Yeah.
Jeff Dudan (30:38.606)
All right, so I have a specific, if you're not a podcaster, you can put your head down on your desk because this is a specific question. We'll come back in five minutes. But all right, so generating AI content out of a long form piece of content and getting the hook right. Are there challenges with that or what's the solution for that?
Cody Schneider (31:00.045)
100%. Yeah, so the biggest challenge is that the AI is trained off of the general information of the social media platforms. So when we think about the average post that happens on social, it's pretty bad. So think about it as a bell curve, right? And it's like, you're pretty far down the, is this good content scale? So the challenge with it is basically helping it identify what good content is within the episode.
Jeff Dudan (31:09.006)
Right.
Jeff Dudan (31:17.102)
Yeah.
Jeff Dudan (31:20.782)
Yeah.
Cody Schneider (31:30.03)
Um, so the trick, there's kind of two ways to do this. And this is like what we're doing and what we're trying to do in the future. So the first way is basically asking, Hey, like what's a key insight from this episode? It's pretty good at identifying that. And then we say, okay, now that you found that like key insight, how to like, go find me a hook and an insight that's related to that key insight, um, from this transcript and then return back the timestamps of that, like information that you just found.
So almost breaking it up into steps, because if I just ask it like, go find me a hook, like within the transcript, it will bring back the most random, irrelevant information. And so by saying like, Hey, like what's the key takeaways list five key takeaways. Now go find me quotes from this transcript based off of those, uh, for each of these five key takeaways that support these five key takeaways. Um, and return the, the, uh, the transcript or to return the timestamps of the words from that, from that quote.
Cracking the Hook: How to Train AI to Find Viral Moments
Jeff Dudan (32:08.238)
Yeah.
Cody Schneider (32:27.95)
Um, we can then take those timestamps. You then go find the clips where it automatically goes and finds those clips. And then basically, you know, that's what gets served. Um, that's kind of the hacky way to do this right now where all of this is headed and where it's going to go is in the future, like somebody's going to train a model based off of only the top performing clips that are on the social media platforms.
So the data set that goes into it is not just the general knowledge of that entire platform. It's just like the top 10%. And so exactly, exactly. And so this is the same thing that we saw with like AI SEO. So like we did, we ended up spending this company out of swell called draft horse AI. It's like a programmatic SEO writer, basically give it a list of target keywords and it writes like hundreds of blog posts based off that. So.
Jeff Dudan (32:59.726)
Yeah, it's curated winners. Yeah.
Cody Schneider (33:21.454)
how like what it's doing is writing from the general knowledge of the like AI, which is again, the general knowledge. It's not like the, like, you know, the thought leadership or the leading top percent. So what we found is that if you actually will like go and give it constraints on what it can write from. So like, Hey, here's like this keyword. So say we're trying to rank for the keyword phrase, like, um, like hotel, uh, marketing strategies, 2024. So you go find what's ranking on the top of the front page for.
like the top five search results for that keyword, you extract all the text from those, and then you say, okay, AI, now write based off of this source data that we already know is ranking on Google. And we've seen that we can get some of these blog posts and landing pages to go to page one in 72 hours. But you could scale that up, right? Where it's like, hey, instead of training off of the general knowledge of the internet, I'm just going to train it off of the front page of Google.
Cause that's only the winners. So now you have the structure of here's how a blog post, like a winning blog post is supposed to be structured. Everything that we create, everything that you write from now on, that's a blog post is basically fine tuned or trained off of that. So that's how we see all this content stuff heading. Everybody's using these general models because it's extremely expensive to build custom AIs. Our friends own this company. It's called SF compute. If you go to sfcompute .com, it's like the dumbest website ever. Uh, it's like, just like text.
But they're basically what they do is they sell training time on GPUs. GPUs are basically like the compute that's necessary to train these models. And the training time is like becoming more and more pricey because everybody's trying to do this, right? But like if I wanted to go train that model that I'm talking about, that's like the find all of the top clips. That's like a million five. Like that's close to the quote we got for being able to do that, right?
Um, so, and that's just like a single, very small use case, right? It's just like find viral clips. Um, and then thinking about, okay, now I have to do this for every, every one of these subsets. So what's probably going to happen is like companies will come out and they'll train these models and then they'll give access to other companies like us that like, we basically like an API that we can call to like, find those like viral clips or, you know, do social media data analytics or, you know, whatever that is. And then they'll just incorporate.
Cody Schneider (35:44.366)
the they're calling them like agents, like they'll incorporate these like digital, like robot thinkers into their applications through these like other companies that they're that have trained on that, that specific data set that, uh, like provides like the, the output outcome that people are looking for. So there's a lot of information. Sorry for the monologue as well. I always.
Jeff Dudan (36:07.022)
No, no, man, that's fascinating because what it comes down to, so our experience is we've been doing the podcast almost a year. And by the way, just cracked 100 on Apple Business and top 25 for entrepreneurship. So.
Cody Schneider (36:25.325)
Congrats, man, that's huge. Those categories are so competitive. It's crazy.
Jeff Dudan (36:29.23)
Yeah, man. And something's going on in Great Britain over in the UK. I don't know what's going on over there, but like we, we, you know, we, so our, our in Q2 here, we're going to be looking at international markets and seeing what we need to do to just go over there. But cause we, we just have some random markets that Jeff just picked up the show. So yeah, man. But like, so we were doing this, you know, small, small, small and mighty team and we're early and.
Cody Schneider (36:40.942)
Amazing.
Cody Schneider (36:49.198)
I love it, I love it.
Jeff Dudan (36:58.638)
we're going through the episodes or they're going through the episodes and they're picking the clips that are of interest to them. And it's like, that's a good clip. That's a hot take. And, and then, you know, as we, we had to, we really needed the double capacity to continue to do the things we're doing. So we go to an outsource and we've got, which is, you know, and, and, um, uh, who's more sophisticated than us and we're doing the, um,
the clips and using AI and we were using AI, but sometimes the clips don't make sense. Because it's a good clip, it's tight, it's a conversation, it's a contained conversation, but unless we know human labored over it to see if it was really interesting or not. And so your AI will serve those types of clips up. But yet the band, the
Cody Schneider (37:35.886)
Totally.
Cody Schneider (37:51.598)
Totally.
Jeff Dudan (37:57.39)
personal bandwidth to actually have people going through these things and saying that it's unrealistic. So, you know, when will the AI really be able to cross into that, you know, I'll misuse a word into that singularity to where now it's actually smart enough to consider these things, whether they're interesting or not. And
Cody Schneider (38:02.286)
Totally.
Cody Schneider (38:16.046)
Totally. I think it's going to come down to like, there's a lot of like, everybody's trying to solve this problem. So we just talked to this researcher out of, I want to say Oxford, you know, way above my pay grade. There's way smarter than us on like this type of stuff. But what they're doing is basically combining like linguistic AI models with like just the general, uh, like AI models that we're seeing be the most popular, like chat, GPT, Claude, et cetera. So what that ends up looking like is like, they can use a linguistic model to find what they call like entities.
Jeff Dudan (38:21.134)
Yeah.
Jeff Dudan (38:33.006)
Yeah.
Cody Schneider (38:45.166)
So an entity is like an idea within a corpus of text, right? So they can be like, oh, here's like a cohesive thought. And then they go, okay, now AI, like, is there a hook within this cohesive thought? And they're like, yes, no, there's a hook. Okay, is there an insight within this cohesive thought? Yes, no, there is. And then that basically like, you know, say they started with a hundred, that filters out 15 of them. And so it's really what it's looking like is going to happen is like the layering of all of these things together.
The universal model, I think we're just probably like, we're probably just like two years out from this. I say all this, right? And like GPT -5 could come out tomorrow and like my business basically evaporates overnight. Like we have no idea what's going on, right? Like that's kind of like the world that we're actually living in with all this stuff. Um, so, uh, with that said though, I think what we're seeing a lot of companies do, uh, is they are basically like layering all of these different models together that do some like,
Jeff Dudan (39:27.534)
Right.
Jeff Dudan (39:31.31)
Yeah.
Cody Schneider (39:44.238)
small task of that entire process and then linking this together. And it makes sense, right? Like how does a human work, right? It's like, cool, here's my checklist of 10 things. Like this is how I go through, like how do I systematize and make a process document? Yeah, exactly, it's all it is.
Jeff Dudan (39:58.958)
Decision tree. Yeah, you go down to decision tree. Like, OK, we went from here to here, and this makes sense. Now we're going to refine it this way. Then we're going to lay it against this. And we're going to lay it. So you layer multiple technologies on top of it. And we're getting with our expanded team now, which is great, we're getting just as many good clips as we did before. But we're getting three times or four times as many. And not all of them are winners. But.
The Future Is Workflow: Why AI Won’t Replace Humans Just Yet
Cody Schneider (40:23.598)
Totally.
Jeff Dudan (40:27.278)
look, I just said, we've just we've cracked up into the top 25 and the top 100. So like, it's it's working, and we wouldn't have been able to do it doing it the way we did it. So now the question is, is, all right, well, if this is good, what does great look like? And, you know, how does how can everything be be a winner? Does do we have to go back? And in, you know, interject that 10x marketing human in there and say, Oh, if we just change this hook to say this, then it's going to be a bet because it's all
Cody Schneider (40:40.526)
100%.
Jeff Dudan (40:55.63)
I was at this, you know, I had these YouTubers at this conference, man, and it was just like, and they were given examples of like what, you know, one guy, any channel he puts up goes to 500 ,000 subscribers. And he's like, here's, and it was in 10 minutes, he's like, here's how I do it. And it was just, and it was just right on, man. It was just like, right. I mean, it's like, and it's the hook, and then it's this, and then it's that. And if people watch it more than once, and then you get this and that and the other thing, and they, you know, it's down to a science, but...
Cody Schneider (41:07.118)
That's crazy.
Cody Schneider (41:14.766)
100%.
Cody Schneider (41:18.606)
Totally.
Jeff Dudan (41:25.838)
Like I think Mr. Beast has just to produce what he's got. He's got over 100 employees. Yeah. So and they're maximizing tools probably. Yeah.
Cody Schneider (41:31.054)
100 % 100 % and like that's, that's a level, right? 100 % 100%. Yeah. I think with, uh, like where, again, just what we're, we're seeing this go is like, there's always going to be a human in the loop that is just like, has some type of intuition. Um, like the, the best people that we know that are doing content, like, yeah, they may use AI tools, but they're just using it for like, cool. I have an hour and a half of video. Like,
Give me five minutes that I can look through and pull out hooks and insights, right? Or like pull out those, like those, those highlighted sections. Um, there's a likelihood like that it could get, again, we don't, with all this, I have no idea, right? Like again, GPT five could come out tomorrow. I could give it a transcript with timestamps and it just pulls out the best, like most banger clips that you could ever find. So that, that, that could happen, you know, like very soon. Um, it's just super costly. And it, it, for a lot of, um,
Jeff Dudan (42:19.31)
Right.
Cody Schneider (42:27.278)
Like for a lot of companies, it doesn't make sense to train a model off of that, like just that specific thing. So I, again, we could go like kind of in the weeds now with this. So, but I think the, the thing that I'm realizing more and more with all this is like clip volume is this huge thing. So like we're seeing, uh, some of our like top performing like clients, like what they're doing is they're creating like multiple accounts across multiple of the channels. So like imagine 30 Instagram accounts, 30 tick tock accounts.
30 YouTube shorts accounts, and then they're doing just like combinations of clips for all of those. And then they see, oh, this one, you know, clip 187 went viral on TikTok on this channel. Let's take that. We're going to remix it a little bit and let's distribute that across all of the TikTok channels or all of the Instagram reels. And so there's like this is compound learning that's happening, but.
Jeff Dudan (43:18.83)
Now does Swell give them those capabilities?
Cody Schneider (43:22.03)
Yeah, they can go and make clips like so basically like what we built into it is like a text editor that I can select a section and then I hit create clip and the clip is made and then it's like, okay, I want to auto crop that so that I can, it goes into a portrait. Uh, sorry. It goes in from landscape into portrait. Cool. That's done. Um, so they can come back like how we're viewing this is like, you're going to have this library of content that you sit on top of. Um, we're building the social scheduling feature so that we can pull in the data of best performing content.
Jeff Dudan (43:37.262)
Yeah.
Cody Schneider (43:50.67)
because then we can create like a learning viral loop. So we saw like, oh, like here's the top performing clips from all of March, the top 10%, like they're all about these ideas, like what's the insight, et cetera. All right, let's go back to our back catalog. Let's find from our 500 episodes, other clips that are similar to the most popular ones and let's go make those, right? And then we can just surface those up. Like we're imagining it as like almost like this like Pinterest dashboard that just like based off of the data that you're.
High-Volume, Multi-Channel Distribution Is the New Standard
Jeff Dudan (44:16.654)
Yeah.
Cody Schneider (44:19.886)
Cause with all of this, I mean, that's what the human is doing, right? Like the best social media managers I know. And like, this is what I used to do when we were at Rupa Health is like, we would publish a ton of content. We would see what was working. We would go back to our back catalog and we would find more content like that. And then that creates this growth loop. We're just trying to do that same thing, but with these AI tools that now suddenly like, I don't need 25 people to run this whole, you know, content production marketing department. Now I can do that with maybe one or two people or a team of three or whatever.
Jeff Dudan (44:30.318)
That's right.
Cody Schneider (44:49.678)
Um, but yeah, so we're still early on this stuff. Like we just added clips like three months ago, like we, for a while we were like, yo, we're just going to only focus on writing content. Um, but our customers kept asking for this feature and now they're asking for social. And then the other thing that they're looking for is like SMS and email newsletter marketing. We're seeing SMS for podcasts. The open rates be like 90 % and like the click through rates be like 40%.
Jeff Dudan (45:00.27)
Mm -hmm.
Jeff Dudan (45:14.03)
Really?
Cody Schneider (45:15.886)
Um, so sites like community, they're like hacking together versions of this. So communities one, um, basically like any of these like bulk SMS newsletter tools, uh, we're just like what people have asked for is like, Hey, the ability to build that into that's, that's kind of, uh, on our product roadmap as well. But anyways, a lot of insight baseball there, but yeah.
Jeff Dudan (45:34.51)
Who's a, yeah man, no that's fantastic, well I'm tracking. Who's a great customer for Swell? Who's a typical customer?
Cody Schneider (45:43.822)
Yeah. Um, yeah. Uh, one of our larger ones is wondering, um, we just started working with our team. We're pretty excited about that. Um, they're, uh, yeah. So they, they're an Amazon company. Um, they, uh, work with, um, a lot of like audible and like their production. They also like have some of the larger podcasts in the U S. Um, so we worked with them. Uh, yeah. So they, they make like, uh, a lot of, um,
Jeff Dudan (45:52.974)
What are they? What kind of business are they?
Jeff Dudan (46:06.062)
Okay, so like online retail promotion.
Cody Schneider (46:12.078)
like custom shows, like they'll do like paired shows, for example, with like Disney or something like that. Um, and then they, you know, sell ad space on top of it. Um, yeah, so that's one of our, uh, larger clients that we're starting to work with. And then we work with like a lot of just like SMBs, a lot of, uh, uh, kind of mid range podcast as well. It's like a broad spectrum between, you know, solo podcasters up to like podcast networks. Um, it's like on the podcasting side. So.
Jeff Dudan (46:16.494)
Okay.
Jeff Dudan (46:37.102)
Alright, well you want to take a look at the home front and see what you can do for us?
Cody Schneider (46:39.566)
Yeah, I would love to help you guys however I can. So we'll get some locked in with your team. That'd be fun to do. So.
Jeff Dudan (46:45.774)
All right. Well, so I can for anybody else who wants to come on the podcast, Cody got one lead from this podcast already. So here it is. Awesome.
Cody Schneider (46:53.102)
Awesome. Jet, thank you for having me, man. I really appreciate it.
Jeff Dudan (46:58.03)
Yeah, yeah, 100%. So a couple of final questions here. If you had, you know, I'm always, we're always interested in informing people's entrepreneurial journey. So if there's somebody right now that's out there thinking about a career in this or building a business or something like that, if you had one sentence to speak into their life, what would that be?
Cody Schneider (47:26.51)
Whoa, tough one. Uh, the one sentence I don't know, but my framework for all of this now is like, find some skill that you can teach yourself online, that you can sell online, do some type of consulting with that. So like learn how to make podcast clips as an example. Um, then you build an agency where it's like, Hey, unlimited podcast clips for a thousand dollars a month, go get, you know, 30 clients and you make in 30 grand a month. And then from that, like,
correlate it into, okay, how do I build some type of business that has like, whether it's a course or a software where it's like a build, once sell, uh, you know, a thousand times. Um, looking back on like my own personal, uh, I guess like business journey, like, you know, in hindsight, very obvious, that's what happened. Right. Um, like I look at what you're, you know, you're talking about what your kid's doing. Like, I think that that is going to lead to a massive company.
Jeff Dudan (48:09.902)
Mm -hmm. Yeah.
Cody Schneider (48:19.406)
Like he understands like supply and demand. How do I do product research, customer service, all of these things, right? And it's like the small scale thing, but all those learnings are going to be parlayed into the next venture, which is going to be bigger, which is going to be parlayed into the next venture, which is going to be bigger. Um, and so I think that's the biggest thing for like a lot of people. Like they try to go for this like moonshot day one and it just like kills the entrepreneurial spirit, right? Like they go and they're like, I'm going to build, you know, a rocket company or whatever, right? Like just that it's a ridiculous one, but.
That's like kind of the level that they go to, but in contrast, it's like, you're talking about like a window washing company or, um, you know, a power washing company. Like you can start something like that where it's just you, you have no employees and easily get that to 10 grand a month, which is like hustling for two years. And then at that point, okay, you have cashflow. You can go build that next thing where you have some people that are making you money. And then from there, okay, how do I then go build a product that I can.
Advice for Aspiring Entrepreneurs in the AI Era
Jeff Dudan (49:09.422)
That's right.
Cody Schneider (49:12.238)
build once, sell a thousand times, right, and do that over and over again. And that to me is the evolution of this. So that's what I'd love to leave with people is like, kind of like, if you're trying to start, that's the way that I would do it. Looking back on just my kind of, you know, experience and journey. So.
Jeff Dudan (49:28.302)
Yeah, get into the game, get in the game. Well, Cody, this has been awesome. I've learned a lot and I really appreciate your perspective on the rapidly changing marketing environment with AI. How can people get in touch with you?
Cody Schneider (49:40.878)
Yeah. So I'm active on Twitter and LinkedIn. Uh, if you Google Cody Schneider, I should come up. If I'm not, I'm doing my job really terribly. Um, and then, uh, our company is swellai .com. Uh, you can go and sign up for free and, uh, take it for a test drive. So those are kind of the core places, uh, that you can get in touch with me. So.
Jeff Dudan (49:48.718)
Alright.
Jeff Dudan (49:59.758)
Cody Schneider, thank you so much for being on.
Cody Schneider (50:01.742)
Jeff, thanks for having me. Really appreciate it.
Jeff Dudan (50:03.598)
Oh, absolutely. Everybody, thank you for listening. This has been Jeff Duden and we have been on the home front.
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