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The Garden Variety — Week 35 (Aug 31–Sep 6)

Film: The Big Short (2015) | CTA: Autoresponder University ($97)


Anthony Bourdain shows up midway through The Big Short to explain collateralized debt obligations using a fish stew analogy. Adam McKay also stops the film for Margot Robbie in a bubble bath to explain mortgage-backed securities. Selena Gomez at a blackjack table for synthetic CDOs.

The director built those scenes because the actual financial instruments were too complicated to explain through the characters alone. He needed help from outside the story.

That's not a narrative device. That's an indictment.


The CDOs at the center of 2008 had been sliced, repackaged, and reratedso many times that the people trading them didn't know what was inside. The ratings agencies — S&P, Moody's — gave them AAA ratings, meaning "as safe as U.S. Treasury bonds," not because anyone ran the math on the underlying assets, but because the math wasn't available to run. You trusted the rating. The agency trusted the bank's description. The bank was hoping nobody looked too closely.

When Mark Baum's team sits down with the fund managers holding these things and asks what exactly is in them, the managers can't say. Not because they're hiding anything. Because they genuinely don't know.

That's the condition the complexity was designed to produce.


If you can't explain it to a normal person, you can't build a funnel for it.


Ebook distribution is the publishing version of this problem.

Most people who write a book and want to sell it — actually sell it, not just have it listed — end up inside a system they can't explain even after they've been in it a year. Bookwire aggregates to platforms. The platforms (Amazon, Kobo, Apple Books, Barnes & Noble, libraries through OverDrive) each have different royalty structures, different metadata requirements, different rules about exclusivity. Your ISBN might belong to the aggregator, not you. Your book might be "wide" across twelve storefronts and findable on two.

Nobody explains this to you upfront. You figure it out when you try to follow the money and the trail goes cold somewhere between the distributor and the retailer.

The funnel is supposed to terminate somewhere. In ebook publishing, knowing exactly where it terminates, who takes what cut, and whether you can audit it clearly — that's harder than it should be. And if you can't explain the distribution layer to a normal person, you can't explain to yourself where your offer actually lands.


The good news is that the autoresponder sequence lives upstream of all of this, and you can build it before the distribution question is fully sorted. But building it before you understand what you're funneling people toward is still the Boiler Room problem from last week — the mechanics can be clean and the destination can still be wrong.

Autoresponder University is $97. It walks you through building the sequence with the logic intact: what email 1 does before email 2 sends, what the offer actually is before you build twelve emails pointing at it. You have to be able to explain the sequence to run it right. That's the point of the course and also the test.

[link]


— Brandyn


Draft notes (for Brandyn review)