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It can be a screening tool. Your height gives them a context to explore your character, otherwise they'd wait for another opportunity. A good answer would be , "Yes, I am sooo short. I never had to pay on the bus because the conductor would not notice me...." -- and then move on talking about your business, as if nothing had happened.
(And yes, you can be confident in business, and absolutely not confident with women. There is no single confidence score. So while one has to become a different, more confident person in order to build a successful business, this is not the same as becoming a more confident person in interactions with women. You can have one but not the other, or vice versa. I have seen both scenarios.)
As to why the screening is effective, imagine interviewing salespeople: you say "No" to everyone, and hire the ones that stay. Won't it give you better salespeople?
You may not have the luxury of saying No to everyone, but an attractive girl does. A 9/10, by the time she is 25 years old, could have been in 5,000 conversations with men that she did not even initiate. If she spends 30 minutes to get to know everyone, it will become her life. Furthermore, 100 of those men are actively moving forward and making things happen, handling objections (just like people on this forum are making things happen in business), so there's not much incentive to dwell on the remaining 4900. The "No, you are short" is highly effective: if you stay, you are a rare confident guy worth a bit more of her time. If you leave, great, she did not have to waste another 5 minutes (times 5,000).
A reasonable objection would be, "but isn't the girl missing out on meeting a great guy?" --- and the answer is No, there are thousands of great guys who are also millionaires, AND who know how to deal with such questions. If the girl lives in a big city and is going to enough high end venues, which an attractive girl can do for free, she will meet enough great guys with money AND looks AND personality AND confidence AND humor AND charisma, so she can then freely reject 99% of the rest in 5 seconds. It's just marketing and understanding the marketplace.
For MJ, the easiest strategy would've been creating a social circle environment where everyone looks up to him, then inviting enough women to simply attend so they'd be exposed to his status and experience, then capitalize on that. It's a low-commitment thing, just attending a (free) and potentially useful business / networking event that is easier to agree to than a date. Think free e-book followed by upselling to a $500 course. As another example, if MJ just created this forum and offered the Insider Subscription without first authoring TMF and Unscripted , I doubt a lot of people would have been interested: without the books it's just too much effort to figure out, whether MJ is an authority.
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