[hydrogonian]

So as I cruise this forum, this show is on the background (starring Joan Rivers). I'm not a big TV guy, but this show is instructional. I've caught it a couple of times before.

The primary message that I take away from this show is "product creation".

Overwhelmingly, every rich person (remember, these aren't celebrities or politicians, but 'average joe' rich people that she profiles, who have gotten rich) have a product / line of products to attribute to their wealth.

For the most part:

They aren't real estate moguls.
They aren't don't own service companies.
They aren't Restaurant or bar owners.
They aren't highly educated (although some may be).

They typically start with the creation of one core product, which becomes successful, and other products follow. But that first wildly successful product is the key. Its usually in an industry with a lot of economy behind it such as fashion, pet products, or hair products for example in the cases of people I mention below

John Paul Mitchell, of Mitchell Hair Products, is worth four billion dollars. He was homeless in 1980.

I remember another guy who came out with a line of gag false teeth, another one who created a line of designer jeans, and another who invented piss absorbing paper to train your puppy with. All rich as hell.

The deeper point to take is to aim for something that will do a lot of volume due to the large nature of the market alone. For instance, its better to come out with a variation of a pet product then to try and target some incredibly niched market with much less money transacting through it every year. The numbers will make you rich, even if you capture a very small part of the market. I guess the exception would be somebody like the gag teeth guy, but thats a very unique product. Sort of like truck nuts.

And for guys who are willing to live simply or abroad, it may take much less success to make you happy and free for the rest of your life than many other people.

[Giovonny]

I love this show!

I know a guy that has made a fortune by creating a "Junk-Hauling" business. He started with one truck and now has 13.

[kingkong]

"The Millionaire Mind" has hard data on who is rich and how they got that way. An outright majority are small business owners. Picture a guy who owns a few car washes and runs them very well, or a parts supplier. It's about running a tight operation and working hard in an unglamorous business where you can out-compete the typical slob.

The smallest group of rich people is doctors and lawyers. I think together they were something like 8% of multi-millionaires. Corporate executives clock in somewhere around 20% of the total. The executives had typically risen through the ranks.

[hydrogonian]

(05-16-2010 11:20 AM)kingkong Wrote:  

"The Millionaire Mind" has hard data on who is rich and how they got that way. An outright majority are small business owners. Picture a guy who owns a few car washes and runs them very well, or a parts supplier. It's about running a tight operation and working hard in an unglamorous business where you can out-compete the typical slob.

The smallest group of rich people is doctors and lawyers. I think together they were something like 8% of multi-millionaires. Corporate executives clock in somewhere around 20% of the total. The executives had typically risen through the ranks.

Good data.

I guess I was referring to the best way that people who aren't going to be doctors, or large corporation CEO's, get rich. People like most of us on the board. Excluding the large diamond heist in G's future, of course.

And by rich, I don't mean one million, but more like in the 8 figure and up range. I think this is the range in which you can kick back and not have to worry about working anymore, unless you are going to drop out and live somewhere less expensive than North America. This is fuck you money, rather than merely 'comfortable but working middle-upper class' money.

While its all good, I firmly subscribe to the belief that, in business, its the best gamble to overshoot goals, and go for large payoffs, than to work too hard for smaller payoffs. Even of you fuck up at whatever your doing to get paid large, you probably will get paid enough to make it beyond worthwhile. Whereas, in small potato type businesses, you'll always be working extra hard, and have more competition, for less money. And its easier to fail over the long term, even of you succeed.

So, I think this show is good because it shows how a lot of average people achieve this type of wealth. Usually, it starts with one good mass market product.

[Whoremonger]

(05-12-2010 09:57 PM)hydrogonian Wrote:  

So as I cruise this forum, this show is on the background (starring Joan Rivers). I'm not a big TV guy, but this show is instructional. I've caught it a couple of times before.

The primary message that I take away from this show is "product creation".

Overwhelmingly, every rich person (remember, these aren't celebrities or politicians, but 'average joe' rich people that she profiles, who have gotten rich) have a product / line of products to attribute to their wealth.

For the most part:

They aren't real estate moguls.
They aren't don't own service companies.
They aren't Restaurant or bar owners.
They aren't highly educated (although some may be).

They typically start with the creation of one core product, which becomes successful, and other products follow. But that first wildly successful product is the key. Its usually in an industry with a lot of economy behind it such as fashion, pet products, or hair products for example in the cases of people I mention below

John Paul Mitchell, of Mitchell Hair Products, is worth four billion dollars. He was homeless in 1980.

I remember another guy who came out with a line of gag false teeth, another one who created a line of designer jeans, and another who invented piss absorbing paper to train your puppy with. All rich as hell.

The deeper point to take is to aim for something that will do a lot of volume due to the large nature of the market alone. For instance, its better to come out with a variation of a pet product then to try and target some incredibly niched market with much less money transacting through it every year. The numbers will make you rich, even if you capture a very small part of the market. I guess the exception would be somebody like the gag teeth guy, but thats a very unique product. Sort of like truck nuts.

And for guys who are willing to live simply or abroad, it may take much less success to make you happy and free for the rest of your life than many other people.

The reason she is profiling them is because its easier to explain a business model based on a physical product than it would be to explain the management of an asset fund for example.

Dont fall into the trap of thinking that the only people who generate enormous wealth are those with a good product or service. There is much more to it than that. Bottom line is that you need a lot of luck to market a product and see it sell in the quantities you require, not to mention finance and productive capacity

[hydrogonian]

True, but I don't count asset fund managers as value creators, even though the money is real enough. I consider them connected salesmen.

I think that the esteem that society places on them is entirely misplaced, and its more of a factor of finance being one of the tried and true paths of upper class educated people and societies fascination with them.

These are often individuals who don't have much talent beyond their previous ability to show up at their entry level position at an investment bank, their university clout, and connections. That type of position is unavailable to those that did not follow that path, and therefore doesn't fall into the overall theme of the show. Profiling such people would make the show much less interesting and relevant to its audience.

I think there is an element of luck, but I wouldn't consider it the overwhelming factor. For instance, if the product is good enough, and you have it patent protected, then I think the market will work harder to make you successful. Whereas if your coming out with a relatively generic, albeit it well branded, product (such as a hair care line), 'luck' and a well managed and executed business / financing strategy will play a larger part in being successful.