A guy who shows you how to do it yourself on the internet makes 100,000. Essentially its just a little float device that moves up and down. It can get stuck. Thats tyler zimmerman, and he makes, on average, 100,000 a year giving Appliance Repair advice over the internet. Through a site called pearl. Com. It was fairly successful, working parttime. And i decided to work on it fulltime now. Pearl, formerly called just answer, is a collection of experts, more than 10,000, handing out advice on everything from oil changes to taxes to training your pet. Good boy. Andy kertzig comes from a family of innovators. His man studied under the man who developed Silicon Valley. And his mother is one of the Silicon Valley entrepreneurs. How nice it is to say your mom, the famous engineer. Weve finally gotten to that point in generations, and time that we can i dont want to talk about your mom the whole time. But who is your mom . Explain that. Im super proud of my mom. She was founder of a. S. K. Back in the 70s when i was born. And she built ta as the first woman to become public. It was the biggest player at the time in the enterprise Resource Management space. Its very hot these days. Yeah. According to the mercury news went back into the Venture Capital. The one person in Silicon Valley who can say, id like to talk to somebody, please. And started another Company Named after you and your brother. Exactly. Ken andy is the name of the new company. I was hoping for andy ken. But my brother and i are very proud of her. Shes doing great. Her company is growing like crazy. Lets talk about you and your company. Efs astounded to hear, the experts who sign up for these services to give advice, some of them are making six figures. Thats their fulltime job. Thats all they do. Some have made over 1 million now. Just answering questions on the internet . You see my astonishment. Yes. Its amazing, some of them are making as much as 40,000 a month answering questions online. Its fun. The kind of questions that are put on, are they sort of about medical questions . Are they legal questions . Dishwasher questions. Yes, dishwasher questions. Thats mine. 700 different categories, 10,000 different experts. It is doctors, lawyers, mechanics, veterinarians, accountants, tech support. Is there one or two that dominate . Doctors, lawyers, mechanics, tech support, Home Improvement and appliance the obvious question is, if the dishwasher repairman gives you bad information, the worst that can happen is your dishwashers broken. If a doctor gives you bad information, that can have really serious consequences. How do you handle those issues . Quality is the number one thing were focused on day in, day out. I started this Company Coming up on ten years ago. Thats what weve focused on, making sure that every single customer gets a great answer. There is some clickthrough language, is there not . I sent a test question to a doctor, one of the things you get back early on is, i understand the following is just advice, based on, et cetera, et cetera. But that said, thats still particularly with law and medicine, that could be a point where have you run into trouble legally . Have you ever been sued . Weve never been sued. Do you have good insurance . We do have good insurance, yes. How does it work, when i ask a question, is there a specific person whos always online . There might be an expert that i need that person. What happens if theyre in bed . Do i have to wait 24 hours for a response when i need it straight away . Good question. Customers come, ask their question, youve got a specific question. Weve got 10,000 experts on the other end waiting for the next question to come in. Like a queue almost. Like ebay, where theres this realtime list. Is there bidding on the answer . They bid with their time. Theyre racing to be the first one to answer you. And thats how it works. Theyre waiting for a new question to come in. Theyve changed their hours, some work the night shift, some work the day shift and theyre finding the opportunity to get the most questions. Let me ask this question without hurting your feelings. You did 100 million in revenue i think i read somewhere. I never heard of you, until you and i talked. And yet youve got these people making 100,000 or more a year. Yeah. Is it that you just are not advertising, or i just had no dishwasher questions . Where is it that i did not hear of pearl. Com . I understand youve changed your name. Even the concept, i was not aware of it. Were one of the bestkept secrets in Silicon Valley. One of the reasons is we didnt raise money until recently. Many people raise money and talk about it, pr, get in a tech crunch and these kinds of things. We didnt raise money until quite recently. We were very focused on, how do we make this work for customers and professionals. Why did you raise money . We can presume because your mom did help you start up the company, did she not . No, i did it on my own. You know someone whos fairly well off. Yeah. Why did you have to raise Venture Capital . I spent the first eight years building the company, very focused on bootstrapping it along and making the model really work. Then it was time to blow open the doors and grow super fast. Thats why we decided to raise money. Whats the average cost of a question . And how many conversations does it take to answer the average cost . The average cost is roughly about 30 bucks. Its different depending on the category. Even within, say, the mechanics category. M some mechanics charge more than other mechanics. About 30 bucks on average. It usually goes back and forth until the customer is satisfied. 100 satisfaction guaranteed as well. Unlike taking your car to the porsche mechanic, that theyll charge you, random, no matter what, at the end you either say im happy, in case the expert gets paid, or you get your money back. What if i say i dont want to pay anything, i asked questions and you know what, im not happy. Do you block me after a certain point in time . After a while, the ratings they may not they may not help you anymore. The journalism business will always pay to ask questions. I want to get the last question in here, and that is that, theres been talk that google sees this as a lucrative sort of thing. And they may get involved. Theyre the big gorilla. Are you ready for google to get involved in your business . We are. Weve been doing it for ten years. Im thrilled by the idea of google entering the market, because its bringing more awareness to the professional services space. They saw what i saw ten years ago, which is that professional services are moving online. Just like amazon and ebay brought the retail online. Thats now happening in professional services. And oh, by the way, professional services is two and a half times bigger than and i like google. But when they got involved in music or facebooks business, it wasnt that much of a factor. Andy, thank you for being with us this morning. Up next, were going to talk about National Security letters as much as the law will allow. So nsa, start your tivos when press here continues. Welcome back to press here. The first rule of National Security letters is, you cant talk about National Security letters, if you received one. My next guest, matthew prince, talking about them now, before he and his Company Cloud fair are contacted by the National Security agency, or the fbi, or any other organization. Cloud flare knows a lot about whats going on on the internet. Now, in the process, the company touches a Staggering Amount of data. Matthew prince has become the booming voice of reason in the debate over domestic spying. Thank you for being with us this morning. Thank you for having me. You, along with 40 other Tech Companies, sent a letter to the Obama Administration asking for greater transparency. It wasnt the declaration of independence, but it was a strongly worded letter that said, we, the undersigned, believe the following. So using the declaration of independence analogy, why did you sign your name on the bottom . The challenge that Technology Companies has is that we are all in the trust business fundamentally. And so a document like the National Security letter is actually a real challenge for a company like ours. And the reason isnt that theyre the Law Enforcement online or proper role, but we need to reassure our users that their data is safe, and that were treating it with an absolute reverence, which is what were doing. Whats challenging about the current policy of Law Enforcement online is that you cant even disclose the number of National Security letters that youve received. And thats just an absurd policy. Explain as we get going, and jump in, but explain what a National Security letter is. If i got one, what does it mean . What am i supposed to do . There have been things like National Security letters since the 1970s. But they really took on their current flavor in the with the patriot act, and with what happened after september 11th. And what the letter says is that its a letter thats delivered by the executive branch, by the department of justice, or some Law Enforcement agent that says, you have to turn over some data about customers that you have. Now, traditionally, there have been warrants and subpoenas. Whats different about National Security letters is they have no Court Oversight whatsoever. Nor can you talk about them, nor can you say, no, i wont, or i would like to talk to my lawyer about this, or id like to tell my customer about this, et cetera. Thats correct. In fact, the first version that was originally passed on the patriot act, you werent even allowed to disclose that you received one to your counsel. Thats since been amended. The National Security letters have been restricted to some extent so you can consult your counsel, you can consult other individuals. But you cant even disclose the number of National Security letters that youve received. Now, you have disclosed the number youve received. The number is zero. What does that say about how pervasive this actually is . Youve been in business for a while. Youve got some customers that governments arent necessarily fond of, yet youve never received one of these. But if he had, he couldnt talk about it. So what weve said is weve never received fisa order from a fisa court, which is another type of letter. Weve actually never disclosed we havent received a National Security letter. What i can say is that as a policy, whenever we received a letter like this, or some order that doesnt have supervision by a court, our policy is to always challenge it in court. To always go to court and say, this is something that a court needs to sign off on. Because due process is an extremely important concept. And due process means that you have to have checks on an executive branch with a Judicial Branch overseeing whats going on. Can you say how many times youve gone to court to challenge . I cant actually. I cant even actually tell you for legal reasons . These get into very challenging corner cases. This is the absurdity of this. Theres a lot of talk that Tech Companies should just come out and say, weve received this, what are they going to do . Are they going to come and lock me up . In some ways that would be the best possible way google or facebook, i mean, somebody, theyre not untouchable, but one of the big guys, it would probably be easier than you doing it. Heres the challenge. The challenge is that there is a process that Companies Like google, Companies Like yahoo Companies Like cloud fare, its not that we get thrown out of that we go to jail for this. I think the real risk is there is a process we can actually make this system better, and we can do it in a way that works in the best interests of everyone whos involved. So that puts us in a really complicated situation. Google has actually negotiated that they can disclose that theyve received between zero and 100 National Security letters. What no one has explained to me is what comes from being able to say, were google, weve received 47 National Security letters and weve challenged them all. Earlier this week, president obama announced a review, there was going to ab independent commission to review the operations of the nsa, and also some kind of public challenge to each of the decisions made by these secret courts. Are you convinced thats going to work . If thats going to improve matters dramatically . And secondly, Edward Snowden, saint or sinner, he brought this debate out onto the public domain. Did he do a good thing . Or did he do a bad thing . So, theres always a tension between technology and law. Technology races forward, sometimes undercuts laws. Weve seen that with copyright and some other places. The risk with a lot of Technology Companies is that weve accelerated technology forward, ten years ago when the patriot act was first passed, there was no concept that you could record every telephone call. Today thats technologically possible. Whether Edward Snowden himself is a good guy or bad guy, i think the debate is something that is very valuable for us to be having. To say, technology has advanced, law is ten years old, do these laws make sense with what the technology is today. And so im hopeful that the Obama Administration and Law Enforcement will think through whether or not this is something we are comfortable with, because its a real threat to businesses like ours that are fundamentally in the business of trust. The Cloud Security alliance, 21 billion to 35 billion at risk, im not entirely sure how they came up with that number, but there are billions at risk when companies say, oh, american cloud, maybe not the place to put my ive always said that the hard drive locked in your desk is maybe not the most convenient place to put your data, but at least youll know when they come with a warrant. The challenge, again, is, nobody is able to talk about whether these programs are incredibly pervasive or incredibly limited in scope. So the lack of knowledge is having everyone assume the absolute worst. Forester actually came out with a study this morning that said that 150 billion is at risk by 2016 to Technology Companies in the united states. With people moving their data to other places. But where are they moving it to . Well, somebodys got a germany, france. This country is in large part strong because we have built up a reputation as being a trustworthy place. Where rule of law matters, where due process is honored, and that has allowed us in part to create technologies which literally gave rise to the invention of the internet. While this may not kill u. S. Dominance in this space, it is a new threat. And were getting questions, not just from hacking groups, but from large european financial institutions, from Asian Financial institutions, who want to do business with us. What i know about technology is that if law doesnt adapt to make it possible for technology to exist, then technology will adapt to flow around the law. So what were doing is thinking about how can we design our systems in such a way that we can make sure that our users data is protected and that we can truthfully answer, we dont have the data. Matthew, i have to stop you there, but im going to take a quick second and compliment you. Ive been reading your blog posts, et cetera, that there are huge reactions either way very conservative, very liberal, the strident reactions. And each time you are not strident at all. You are reasoned, and calm about this. And i think youre doing a lot to teach people about whats going on, and i appreciate you doing that for us this morning. Thank you. Thank you for having me on. Press here will be back in just a minute. Welcome back to press here. College football returns this week. First pac12 game thursday, cal hosts the northwestern wildcats saturday. You can watch the games online. And if you have the right cable provider, even on your iphone. Sports is casing the viewers he or she goes online or goes mobile. Now, if you prefer the other kind of football, like martin does, you can watch arsenal match online wimbledon, how about that. This year wimbledon put its matches online as well. Jay watches those intently because hes a sports fan and also because his Company Makes those streams possible. They handle more than 1 billion videos per month. I must say, as i was preparing for this show, and recording the track that tells people whats on, i had to say it a couple of times. Take seven. Yes. Ill start with the easy one and where in the world did that name come from . Uala is a southern indian language term that means cradle. We were cradling a new form of innovation. Jump in every time we mess it up. There is a Staggering Amount of video data out there. What are you seeing . I mean, brief us on that. It is incredible, really how much video is being consumed around the world. Really what were seeing is a complete transition from traditional broadcast type video to more of an internet provided, internet delivered type of video. And its really happening across all screens. Its not any longer relegated to just the living room, its now across tablets and mobile devices, and gaming consoles. And so this fragmented audience is just voraciously consuming content of all types. Given the explosion, are you going to break the internet at some point . The amount of bandwidth is just unbelievable. Theres no doubt there have been concerns, and certainly theyve been certainly talked about a lot, about whether or not bandwidth around the world in all the different locations is going to be able to keep up with sort of the pace. I think at the end of the day, what we see is incredible throughput being available in all parts of the world, not just in north america. And as a result of that, you know, the ability for consumers now to be much more in charge than theyve ever been before, in terms of their ability to watch what they want, when they want, on the device they prefer, thats available now everywhere. Whats happening faster, that were building the pipes bigger and fatter, or the guys like you are figuring out how to send video better . I think both. Both are happening, no question. Whats happening more . I think generally, were doing a better job as an industry in terms of understanding how to basically deliver higher quality, higher valuable sort of content in a way that people are willing to consume it smartly, and in a more personalized way. So were really Building Technology now thats allowing consumers to be more in charge. Theyre being able to consume what they want, theyre able to do that in an environment thats very much suited to how they prefer to watch movies, watch episodic television, consume sports. Presumably theyre producing their own a lot of this is driven by the users taking their own videos and uploading them. Professionals like scott produce wonderful content, but nevertheless, is there a big sort of displacement going on . Citizen journalism is certainly a big topic, and i think for the most part youre seeing lots of Companies Making investments, including apple recently, with an acquisition around being able to provide more ability to consume and drive more video to either their platform or their store, and as a result, be able to reach more consumers. I think the one thing that is happening with respect to the way in which content is now becoming available, is that theres really a bifurcation between sort of user generated type content, kind of at the low end where people with their mobile devices and their cameras are being able to capture whats going on with politics and fashion and sports and that sort of thing. With a much more professional approach upmarket with all the big media companies. Which is where you really come in. Youre the comedy channels and Arsenal Football Club and the good ones, the really good football clubs. Right. Who absolutely depend on when that fails. I remember, it was jon stewart and the fellow from fox news was going to have that big debate, and it wasnt you, was it . No, it wasnt. Was it one of your competitors . It was. They should have gone with you. It was a catastrophe. People paid money and they sat down and it wasnt there. I think thats whats changed in the last couple of years, back to your question, which is the price of poker now is very high. The ability for these kinds of technologies to be relied upon 24 7 across a variety of different geographies around the world is clearly where the imperative is. Thats where the bar is now. I think thats one of the things that the industrys done a great job of. You mentioned earlier on the fragmentation whats going on in the media universe. What does that mean for the large established players, say the one that owns the station, comcast . I think in many ways, whether its sort of what comcast now has in terms of its Assorted Properties around the world, or what were watching happening with cbs and time warner currently in new york, where youve got broadcasters and Cable Companies that are in dispute over fees and that sort of thing. I think in general, what were finding is that most of the big networks and big operators now know that their Business Models are going to be forever changed. It doesnt mean that Television Consumption is down. In fact, its up. But its being complemented with a variety of other opportunities to monetize their audience. I saw the same study that said despite all the things happening on tablets and whatnot, that tv is still doing well. Which thrills me to death. Jay, the ceo of uala easy for you to say. Thank you for being with us. Press here will be back in just a moment. Thats our show for this week. My thanks to our guests. Im scott mcgrew. Thank you for making us part of your sunday morning. Hello. Welcome to comunidad del valle. Im damian trujillo. The latest from the cast members here from the latest production called valley of the heart. Plus, the latino startups alliance on comunidad del valle. We begin with a man honored by the California Wellness foundation for his work in pushing health. Kevin williams is my guest. Hes with the berkeley youth alternatives. Welcome to the show. Congratulations. Well, thank you for having me. This is quite an honor. 25,000 grant by the California Wellness foundation. Yeah. Like vegas