Interviewing Itay Lukach
“I am a musician, I’ve been on MTV, I’m screenwriting, I’m an entrepreneur, I’ve owned a bar, a DJ company, and a production company.
Day to day I’m trying to combine the world of creativity, which is not very profitable, and the business community. “Keeping it real enables me to make another mill.”
Why do you think the creativity world is not profitable?
In Israel the music industry doesn’t have money. I’m a “big spender” with the lavish lifestyle for me and my girlfriend. I’ve got 12 million views on YouTube, so when I make commercials I do make money, but not from my videos or music. Everything in life is a statistic. In computer fields/high tech people who learn tech study making real money. You can always try to be the 0.1%, but it’s very hard.
In Israel only the 0.1% make money?
1% is going to make some money, not that nice. Even the 0.1% won’t be millionaires. Maybe 20–30 people in Israel might make a million dollars out of music. I’m considered to be a great MC in Israel, and I got crowds and shows and hits, and if I would count on the money from music, I would live in a small room and eat pizza.
How do you think people who are creative in 2017 could create and make music?
Sit your ass down and write. Write for twelve months before you try to be a “professional”. Don’t wait. Do it. If you lift and go to the gym for four days a week for twelve months, you’re going to get recognized. Go and see in each field how people are making money. Who’s making money? Who’s not? Just imitate the M.O. (Modus Operandi).
Should people make more reverse engineering about their goals?
Marketing, how to make money, if someone makes money, yeah, reverse engineer it. Usually people go into a field when they love it, but still don’t make money. In Israel you’ve got higher chances to be famous, but you won’t make money. And in the US it’s very hard to be successful, but when you do, you make money.
What can we learn from it?
People should focus on their area. For example, Israeli artists try to make music in the USA; it’s crazy. Why would people in the US want to hear someone with a strange accent from Israel sing or rap?
If someone has creative skills, usually in Israel, You have to find another job, unless you’re in the 1% of guitars players in the country. Or if you’re the 1% viral web personalities, you’ll probably have to make commercials for TV to make better income.
What could make someone different from others?
I write faster, I’ve got great standard lyrics. I’ve got a great approach, plenty of experience. If you are a good writer, write. If you are a great musician, make music. Me? I’m fat. No one will take me to run a marathon. I’m overweight. I won’t do sports jobs. If someone wants me to write a song or make a video or a script? I could do it. I won’t go from zero in a field where I have no talent. Everything is sales. You’re selling everything.
You say like, don’t dwell on the fields you got zero talent or training?
If you’re 16–17 years old, that’s one thing. If you’re 25–30 years old, that’s another story. Look for an unfair advantage, get to be a higher level professional. I don’t know how to paint. It’s not smart for me at 31 to start drawing when I have no skill in it.
So let’s say if someone is like over the age of 30, they should find a talent they’re good at and focus and be great?
Yes, focus on your abilities. Make money. It could be hard to figure out what you’re good at and make money out of it. Lot’s of people are good at sales or speaking, or writing. They don’t know that you’re trustworthy and have skill in writing, speaking, making videos, selling. And even if you’re an asshole, some people like it.
Have your attitude, and get your set of skills. Use it to make money. It depends on how good you are, how the field or market is responding, and see how much time you’re investing in yourself. So yes, it’s all a question of time and focus, like you’re doing Eitan.
So most people are not focused?
It’s “hidden unemployment”. When you’re unemployed you’re not working. When you are at “work” it’s a “secret unemployment” — drink coffee all day, play on Facebook or Farmville, SnapChat, distractions, emails, WhatsApp, Twitter, speak with someone at the office, or make phone calls. Focusing on 2017 is hard, but you should avoid it.
If you employ workers, you don’t want to make an unpleasant environment. Google here (In Tel Aviv) makes you stay longer at the office. Gym, swimming pool, Gymboree for the kids, food, etc. It makes the work interesting and makes people happy.
It’s a tricky question. You don’t want to be the bad cop and make your employees grumpy. You want them to be happy and still create and do your work most of the time. So it’s a thin line between my employees’ love to come to work, or at least not hate it.
So I totally agree. People, at least in Israel, sometimes spend a big part of their day not working. How could companies make their workers be fast?
Despite the hidden unemployment, I think it has been proven that the bigger the company, the higher “hidden unemployment” is. Companies with a few employees make it better. So you’ve got Google, or Elon Musk who could fire people who haven’t worked fast or hard enough.
You can be a “good boy” and be hard and tough with employees. Or be an asshole and scream and change employees. Me? I’m a nice person. I couldn’t yell at my employees for spending time on Facebook.
What works for me? I like to make the environment pleasant, I like to make jokes, bring food to the employees, have a fun environment. That’s what works for me and some other people, but not for everyone.
Things will work anyway, people will check their phone all day anyway, it’s almost impossible in 2017. That’s not how the world works today. You could still make IPOs, exits, whatever, even with some “hidden unemployment”. It’s not good for the company, but it’s not a deal breaker.
Well, I agree that most businesses don’t tell their employees to stop using their smartphone while working, but some companies do it.
Well most of us are addicted to our phone, so someone might be distracted all day. Distracted about what happened to his friend or family, because he’s not checking his phone.
But if someone is distracted half of the day, you probably should fire them. But 5%? Maybe you should let him do it. If something is working and going well, don’t fuck it up, just because some workers spend time on social media for fun. Be worried if they’re not bringing in good results. Sometimes a right place is better than being better all the time and then shutting down the company.
Some companies I know the employees are not feeling appreciated and quitting their job. If someone is doing a great job and not appreciated by his boss, they’re usually leaving. So some companies get a “motto” of “let’s make the employee feel bad” because they try to make them work harder. Usually, it doesn’t work.
I don’t think it’s a smart move. Not at all. Even if it works, it’s a dick move. I don’t think the business will grow if you crush everyone on the way to your success. People will turn on you. You should make sure people are satisfied, at least satisfied, if not happy.
How could you make sure employees, clients or investors are convinced?
Give excellent service, make sure they get what they want. If it’s a restaurant, make sure the service and food are excellent. If you’re a lawyer, make sure your client wins and is happy. Make people feel good. And ensure they get what they paid you for. If they feel good, But no results? That’s bad. They see results, but you don’t make them feel good? Ok. Both? Amazing.
And how do you make employees more productive and feel good?
First, find good employees, make sure they get paid enough, if not, give them stock or options or whatever. And make sure you’re honest and appreciate them.
Two friends of mine were about to ask for a raise, the bosses heard about it. He called them into the office to yell at them, that they’re not doing their job, although they were working fine.
If your employee is great and you don’t have funds to pay him much more, don’t lie and tell them they’re bad employees and bullshit, just to save some funds on their salary. They will leave.
People want to get paid and feel appreciated. Bottom line. I believe that for both workplaces and relationships (friends, family, etc.). If you feel unappreciated, you’re having doubts. Don’t make cheap manipulations, that’s awful.
I know a few employees in a company, they left altogether because of an evil CEO in a startup, and it fucked the company up. They probably replaced the CEO, and they tried to fix it, but it was a mistake to give too much power to the CEO if he’s on the path to drive your company to bankruptcy. And ten employees leave in the same month? Come on now.
I believe bad salesmen sell shit and trick people, it’s a fraud. If you’re a boss and make everyone leave, and you still make some money, it’s the same. You shouldn’t do the opposite as well. Don’t praise awful employees, be honest and fair.
What else can people learn from the Israeli startup industry?
‘Silicon Wadi’ is the name. People here are working their asses off. Five and a half days a week for 14–15 hours. It’s not as formal as in the US, not suit-and-tie stuff, it’s like ‘Hevre’ (fellas, in Hebrew), you know, and laugh with everyone, like the IDF, almost everyone been in the army here, that’s the vibe.
If you work in high tech, 12–14 hour shifts a day it’s cool. In the Netherlands they’ve got poor work habits, they don’t work the hours, they don’t answer the phone in the evening, and no one’s willing to go the extra mile.
In Israeli companies, we’re a small country, but you always hear about “exits”, the best businesses in the world like TEVA, Checkpoint, etc. Everything comes from taking the idea forward. It’s hard because there’s plenty of bureaucracy, but the spirit is fantastic.
So you think one of our “secrets” is having that unique vibe and connection between people?
Two things: Israeli vibe and high work ethics. People willing to work hard, for long time. And they got great vibes.
People overseas don’t know, I speak with people in NYC, people there have friends, but not like here. Here I’ve got plenty of relationships and friends, and everyone is speaking with everyone. People will tell me I’m fat, even the taxi driver said I’m fat. In the US they won’t talk like that.
It’s also the political correctness. Plus everything is strict in the US. You might laugh with your boss in Israel about fucking his sister. Take a look at our friend Ronen (Chairman of a big investment house), We’re bringing ‘Knafe’ and food to their offices, and he’s laughing with all of his employees, and it’s a freaking investment bank. It’s probably not happening on Wall Street.
Me and you (Eitan), we go and have laughs with multi-millionaires and CEOs and presidents. And everyone is warm and has fresh vibes. They make you feel good in Israel. People know if the company is paying, and the vibes are good, and you might make an IPO or exit, people like it.
Also, we’re dealing with hard stuff. The army makes people exercise their firm work ethics, technologies, how to be tough, how to make combatants. Have you gone to war on the Gaza Strip for three years? You’ve been in war, people got killed. 12 hours of work a day it’s nothing after the army. And most of us come back better from the army, which is great. Baruch Ha-Shem.
What about Venture Capitalists and Angels in Israel?
You’ve got a lot of places in the world with angels (angel investors) and VCs. I used to be a ‘finder’ (a person who finds investors for start-ups). The angel investor wants to see someone that they can communicate with for the long haul.
In Israel, you can reach an angel and get an investment if you’ve got something working well. Most of the VCs won’t invest in pre-seed. Some of them might put up a little funding in the seed, usually not.
I don’t know if it’s different in Los Angeles. If you want to get seed money for $500,000 and you’ve got a good idea and a good team, it’s not that complicated in Israel. It’s funny, angels are not as formal as you’d expect, you can make jokes and laugh, it’s not as scary as you think it is.
I’ve got a funny story. I matched between a few angels and two guys with a startup idea. They come to the meeting, a total of six angel investors. One of the angels I didn’t know said to me “You’re the guy who sings about crack and selling drugs and all that.” So I tried to explain to him it’s a joke, “I’m a comedian-rapper.” Everybody was shocked. But it was strange and funny. Separating my worlds is hard.
How do you use it to your benefit?
People like to work with celebs. Individuals or angels sometimes like my music. I once met with two angels because they loved my music. Even if they don’t know me, usually their son or daughter likes my music. And I’m a funny musician, and it makes a weird impression.
When I’m at a coffee shop in a meeting with angels, people come to take selfies with me, it helps, like social proof, it’s crazy. In some cultures, when you prove yourself in one field, people will trust and believe you’ll be successful in other areas or industries.
Plus I always make videos for people. I made a rap video for some angel investor’s daughter and got her free tickets for my shows. So sometimes it helps.
To be a ‘Finder.’ Still going in 2017?
Of course, lots of angels won’t meet you if you don’t come from someone they trust. With VCs, not, because they will meet anyone. But with angels, yes.
I have a friend in London, who knows angels there, and I make connections. Most angels meet like 200–300 startups a year, and invest only in few. And finders get 5% from the deal, most finders, 5% is the minimum. Also, it depends on the work you do. If you get 100k and your goal is 1 million — you have to work hard and be very connected; it’s not like just study the skill. The field of finders is crucial and very relevant in 2017. And will be more useful for years.
Angels need someone to do a job for them, to have someone they can trust.
Tell me some crazy story
Well. The most insane story I have is how I almost ended up in Egyptian jail. The year? 2009. I’m young, overweight, 200kg, huge white guy with dreadlocks, and I’m passing the border in my car with my friend around 1:00AM.
We crossed the border, I forgot I had this mini club (nightstick, cold weapon) in the car. So the Egyptian border cop is checking my car, I had tons of shit, my buddy was drunk and vomiting outside, and they found weapons. I was panicked. They said we’re going to the Egyptian jail and later we’ll be judged in Cairo.
I only wanted to go to the casino, really close to the Israeli border. The jail is crazy there, so I was begging for my life. They kept my friend and my car, they sent me back to Israel with the weapons, and they asked me for a pass from the Israeli police (that they got my weapons). It was just near the water.
I was like, “Let’s just throw the weapons into the sea, and leave my friend and car in Egypt, my family is wealthy enough, fuck the vehicle. But I couldn’t leave my friend there. And the car. They would send my buddy to jail for the rest of his life.
So I went to the Israeli police, they gave me that pass that they got the weapons and everything. The Israeli police said I could get four years in jail. I am like, “I’m a kid, just some clubs and shit, it’s a hubby, I’m not a mobster.”
So I came back to the Egyptian border after like four hours, and the Egyptians freed us. So we went to the casino in Egypt. I lost like $600 at the casino and went back to Israel, and on the way back the Israeli police investigated me. I told them I’m just a boy, no records, just like to collect weapons. I was panicked again. So at like 7:00AM they gave me my weapons back. I told them “No, keep it, I’ve had enough trouble for one day.”
So after two days I went back to Egypt and went to the casino again, and this time I won like $300. And that’s it, we got back from Eilat to Tel Aviv, and I got rid of any weapons I had at home.
That’s a gangsta story
Yeah, I’m an OG.