In trouble trying to obey rules. I would lovei would love to get a business license and be happy to pay taxes but i cannot. John Society Needs rules ll. Even enemies want rules before they fight. Rules in a knife fight, no rules. John would america be better off if we had more Rule Breakers . Ne. Lets get the show started. Thats our topic tonight. And now john stossel. John we need some rules. They make life safer and more predictable. When rules multiply, as they have, we are better off when some people break rules and show us new ways to do things. The Wright Brothers did that when they built an airplane. Henry ford when he createden the assembly line, jeff beezus when he created amazon. Entrepreneur mike make outlets decided to honor innovators who defy convention i creating what he calls rule breaker awards and every year he gives awards to whom . We recognize the greatest people this country has toff offer call Rule Breakers, people that are changing the industry rules for their industry. They find us online, apply, and we recognize the best of the best. John my gave an award to the creators of the Company Called rent below. Site john a website that lets you rent stuff for 15, a fishing pole for aa day, 5 for a power drill, and the other side of that, it allows people to use stuff hav without having to pay big bucks to buy it. O this seems so obvious to me. You would think so,so, but they have not. Most of the things we use go idle. The pen in your hand is not use most of the time. There is value in that. Else. They have started this sharing economy, stuff that you have the do not use is valuable and can be rented out to someone else. John and there are other companies. How come you pick this one . Nothy they applied. Applied. They are exploiting the opportunity to get exposure. Do not sit idle. Be out there. John he also gave an award to the maker of floating rubber duckys like this, duckys like this, company that has the nerve to promote itself the star wars music. The ad points out, while the traditional rubber ducky wasas made in america, today everyone is made overseas. Overseas. This company is bringing the industry back to the us. Yes, we can. John these are some of the other products that they sell. Here is what it looks like out of the box. They get why do they get an award . Different is better. Different gets noticed. We have had enough rubber duckys in our lifetime. This is a company that has decided to put a brandnew spin on it. By s john and he does not pay mr. T or pay these people. Apparently they are happy to become rubber duckys. John conan obrien called and asked if they could produce hundreds of these were his show. For john mike advertised that he will give his rule breaker award only to forprofit companies. D you broke your own rule. We are going around collecting all of the things that hospitals needle over the world, and we have it in so much abundance in the United States that we cannot use it. It. We are picking things up from here in delivering the air. John this is obviously a good idea. When this application kaman and i learned there was a notforprofit conducting a let industrial medical waste that was now going overseas and serving people, it had to be recognized. We change the rules on the spot. John it made me wonder why they are throwing a stuff in america. We call the head. America puts expiration dates on everything, even stainless steel scissors, adult diapers. Aid of the the hospitals have to toss them out because they are afraid of the fda and the accreditation committee. The horrible result of a Litigious Society that we live in, but i was thrilled to hear other nations could use our waste. John you are a rule breaker yourself. You self published a book and she did. Ii called barnes and nobles and said, i came out o with a great book. Hed they literally laughed at me on the phone. We dont take self published authors. At i called my friends. We went to all the barnes and nobles in the area and start the books on the shelves. Then three or six was later i got a phone call from barnes noble. I remember the caller id popping up and i answered in a fear. They said we have a problem. W they said to we are selling your book. We dont no how, but we need 30003,000 copies today. I got to every shelf in every Barnes Nobles in the country. John you put a price tag on o. And they sold it that is exactly it. Im not suggesting it for other people. John here is one more of his award winners. I do not understand how it makes money. I dont unders foxs rick reisman did a story on it. Here, started this company. Starte company. They dont want people to drink and drive. Nine different cities around the country, places people can take a free ride to the beach. Not just to the john they are now in many other places. S. These men run the free ride. I dont get it. How can you make money . We use electric cars which cuts out the cost of fuel. We work with various brands to wrap the vehicles in advertisements. Theres video ads on the inside of cars. Obnoxious things glaring at me. You get no free ride. Youre handing out samples of products and that still pays for itself, advertisers willing to cover your profit and driver and everything. You see the outside ad, try a product, video ad. We like to think we create a service that reaches consumers in various ways. Now youre in new york, florida, new jersey, california. Regulators coming after you . Not so much. What weve seen is welcome open arms and always a free ride. That gets around a lot of regulations. I shouldnt have so much trouble with this concept. I worked for years in commercialfree tv and the advertisers paid my salary. We all came out ahead. Its just hard to believe that advertising can pay for all this. Youre actually making money, a profit. A profit . 1 . Were growing. Thank you, alex, james, mike. So far weve talked about Rule Breakers who broke business rules. But its a very different thing to break governments rules because government is force. Government puts people in jail. When an entrepreneur created something called silk road, a website where people used bitcoins to buy pretty much everything, government investigators got upset. Investigators describe it as a black market bazaar. Revenue for the site is estimated at 1. 2 billion. Most of that money came from sales of Illegal Drugs and thats why the government wanted it shut down. They got it shut down. They arrested the founders. Most americans support that crack down. 31yearold Ross Albrecht founded a drug dealing website called silk road, anyone, minors included, could buy narcotics and have them sent directly to their home. How nice. Federal judge in manhattan heard the case, eventually sentenced mr. Albrecht to life in prison without parole. This is a judge that finally got it right. We all agree here . Life in prison without parole. They are all happy this guy should be locked out. The only thing is Bitcoin Center says, no, silk road is a good thing. Thats correct, 100 . Well, it makes the streets a lot safer. How . When you have prohibition, basically it leads to violent gangs taking the place of what would otherwise be peaceful trade. Hes an entrepreneur and innovator who broke rules and basically did what the war on drugs hasnt achieved in 40 years. Hes made the streets safer. Is that not what the war on drugs is all about or punishing people who take drugs. A judge said no way it decreases violence. Shes incorrect. Lots of studies show people that use the site are six times less likely to encounter physical violence, five times less likely to encounter life threatening situations. They definitely made the streets a safer place. Its common sense. Whenever you have prohibition of anything, youre basically replacing violence with peaceful trade and exchange. Also you had the reputation feedback from users, so the fbi tested the stuff that was being sold, drugs, and said, this is unusually pure. Its not the usual poison we get. Thats correct. People dont know what they get when they buy it on the street. Theres no system of accountability. What silk road provided was accountability, akin to ebay, users reviews. People used what they were getting. So it made it safer for drug dealers as well. The same judge said to russ albright, for those considering stepping into your shoes, they need to understand there will be very severe consequences. Its sort of odd in that after they closed down silk road, other sites opened up. Now there are more of them. They keep shutting them down but there are more of these site. Thats correct. You see a 200 increase in the number of online sales for drugs. So they failed and yet they still persist in these policies that just dont work and punish innovators. He also allegedly paid to have hits done on people. Were against that that rule breaking were not for. I heard those rumors in the media. He was never indicted for murder. Prosecutors didnt actually charge him with that. Thats right. People are presumed innocent until they are found guilty. The idea that we should be promoting him as a murderer when hes never been charged with murder seems like a crazy idea to me. Assuming he didnt murder anyone or try to murder anyone, what if his site sold not just drugs but machine guns and explosives. Still okay with it . Those things were expressly forbidden on the site. Thats why i think its such a tragedy hes been sentenced to life in prison. Thank you, naomi of the Bitcoin Center. To keep this going, facebook or twitter, use Rule Breakers. Let people know what you think. Coming up, street art from the right. Breaking the the rules with posters like abortion barbie. Also teenagers who make millions breaking show business rule. The company with almost no rule. You choose your salary and your boss. How can that possibly work . Is the company about to fail . No, im surprised its thriving. All that when we come back. We live in a world of mobile technology, but it is not the device that is mobile, it is you. American entrepreneurs do try all kinds of new things but sometimes to find really radical ideas. We have to look overseas. In this case to brazil where ricardo owns a company that used to sell washing machines but now sells all kinds of things. When he was 20 years old he took over the company from his father. At the time semco was in trouble of going bankrupt. He turned it around by breaking lots of old rules. Ricardo, like what . Why do they need to have a boss they dont like. Why arent they involved in choosing bosses. Why cant they evaluate their work constantly . Why cant they work through a task, instead of showing up for hours a day. Why do we have this old trillstyle system when were in a completely different world . Because it makes sense. The first thing you do is get rid of the dress code. I can understand. Thats simple. What do you mean they get to pick their boss . You think how a person comes, monday, john is going to be your boss. Live with it. Thats very different from saying, guys, we need a boss, right . Lets go out and see some of these people and lets all together, were going to be the team, lets talk to this person. A lot of times well have them come visit the company lots of times, then lets decide together. Weve had a record of less than 2 turnover a year against 18 en our business because People Choose their bosses and evaluate them every six months. Workers choose their own salary . Well, thats just an extension of the same rational. If you tell people, youre transparent and have freedom and say, look, this is how much everybody makes in the company. Here is how much you make compared to what you would be making at another place of work. Three, here is what the company makes, what we can afford. Anyone who has these three pieces of information is totally able as an adult to choose their right salary. Theres no use to haggle, negotiate about it et cetera. Wait a minute. If i pick my salary, pay me 100 million. Thats fine. Every six months, dont forgot, people are deciding whether they want 100 million. People intend to figure out where they belong and make reasonable requests . Which they do and have been doing now for 30 years. I dont remember more than a handful of problems in 30 years with thousands of people. Folks are good about this. Give them the right information, youre open about it, they will react accordingly. No one checks expenses, no storeroom pad locks, dont audit petty cash accounts. Dont people steal. Lets say your world view is 2 of people steal then 2 of people steal as well. The difference is i would have to make the other 98 go through searches, pad locks, slow down the company enormously, take away all dignity in working with these people to find the 2 . These 2 tend to be weeded out by those people anyway. Because anonymously when they put together the the people they want for the next six months they do away with the people they figure are probably stealing anyway. Im clueless. Hearing this, i would think, no way this can work. And yet youve been successful. Profits are up. The company has grown from a Million Dollar business to a billion dollar. Its grown tremendously. Thousands of people. Theres no issue from that standpoint. It just that people scratch their head and they say but why did we have all this other silly stuff. Its not necessary at all. As we did away with this stuff, we found that we could all concentrate on what we do. We had to compete. It been a difficult environment. Weve grown 31 a year by saying lets concentrate on what we all need to do to make this work, you know. 41 a year, even through the recession in brazil. In america, companies have Human Resources departments that would have a heart attack over this stuff. You dont even have an hr department. Thats right. We dont want anybody having heart attacks, so we did away with the whole department. In America Online shoe seller trying a less topdown management system. Eliminates titles and encourages selfmanagement. This sounds awesome, right . You dont have a boss to yell at you. Not all employees thought so. 14 of the companys workforce has already accepted zappos employee buyout and walked out. Thats kind of a failure, 14 of the company left. Zappos said, no, we didnt want those people. If they arent dedicated, fine. I went over to talk to their staff in las vegas. They are going through a difficult time because they are using a system which makes it necessary to log everything in. They are going through a period where its difficult to adapt to this new stage. But generically the heart is in the right place, which is to say you cant possibly run Companies Like alfred sloan ran general moments or welch won ge. That is finished. Ask them how happy they are working at each of these places, youd be dismayed. Thank you, ricardo sembler. Coming up teenagers breaking show business rules and making big bucks yamering like this. Black, dangly earrings. So cute im going to die. Good. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Yes, Investment Opportunities can be anywhere. Or not. But you know the difference. E trades bar code scanner. Shorten the distance between intuition and action. E trade opportunity is everywhere. We all feel the calling to build something great. Thats Justin Bieber when he was a little kid. He created his own youtube channel. Years ago this might have been a cute hobby, but kids doing this broke the old rules of show business. Musicians used to have to get an agent or get discovered by a Record Company but bieber didnt start that way. Now that video has been viewed 49 million times. Of course now that bieber has been signed by a major label, he gets to do far more expensive and grotesque things like this. Okay. Im not a fan, but im clearly out of touch. Im proud i have more than a quarter million twitter followers. But bieber has 66 million. I have a youtube channel, too. Most of you watch this program on fox cable channel. But if you miss it here on the web, heck, some of my stuff gets viewed millions of times. It makes me proud. Then i learned there are kids like this girl who make amateur videos that get even more views. Baby baby baby tiffany posted that on youtube when she was how old . I was 17. You were just fooling around and what happened . I started posting videos when i was 15 and slowly fans started to watch. Slowly it started to grow and become something i never would have imagined. Which is youve got millions of views and youre making money from this now. Im able to do music full time. Im able to tour and meet fans around the world. Its amazing. You started on youtube. You certainly had no way of getting an agent or auto contacting a record label . I dont know who to call. Im like, well, i have a camera. Youtube is free. Lets upload and see what people think. That was the beginning. Youtube makes money from advertising. If you get enough viewers, as you have, theres money in it for you. They keep 45 . Its actually really interesting. Being on youtube for a while, i did it for free, because its my passion, my love. Gradually brands are starting to come to youtubers and theres different opportunities through merchandise or sponsor ship, brand deals. Now they are looking to us because we have viewers. So its amazing because its like oh, wow. Wow is right. Its not just musicians like tiffany who changed show business rules, young girls with a nack for talking about clothes and makeup make millions, too. Here is one of them. Im really loving taylor swifts look. In this video im going to show you how to do it. Reporter thats michelle phan. Its viewed a billion times. The Cosmetics Company will make money this year. Bethanie moda. I decided to show you guys outfits if youre going on a date. Shes now a star, saying look what i wear. Its amazing. Shes relatable. Shes been on dancing with the stars. We have these fans because were reachable and people can relate to us. But there must be a zillion people trying to do this. How come the two of you hit . Both she and you are home schooled. I think theres magic in home schooling here. I think part of it is because were a little socially awkward. Thats our outlet. We can find people who get us when no one else seems to get us. Also being home schooled, we have a lot of times on our hands. Hey, look at youtube, see who is posting videos. Youre socially awkward but you can sing on tv. Well, i kind of got over i think its a good kind of awkward. There are other young people doing these youtube videos making significant bu