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Create Value. What does it mean?

Yussef

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Exactly. It's redefining how money is acquired. To create a velocity of money flow into your direction, you have to HAVE what money is attracted to, and that is VALUE. Value is defined by NEED, DEMAND, or WANT.

Think of value/money relationship like a magnet: Value is the positive charge, money is the negative charge. Put the two charges (negative and positive) together and create attraction. The magnet moves and creates a bond.

Unfortunately, it the world of "money making" -- people approach money on a polarized basis; they attack money with a negative charge (I wanna make money! I wanna get rich!) and you know what happens when you inverse a magnet? You repel the two forces. Two identically charged magnets face to face will repel each other. This simple analogy (positive charge/negative charge) is why most people never make money. To attract money, you must reverse your polarity from negative (repel) to positive (attract).

(This shit is probably going into my next book if I have one... consider it a preview =))



Bingo.



True. This is why anyone who begrudges "rich people" they are actually begrudging value creators and job creators. Class warfare is nothing but an attack on the very people who create value in our world. I'd don't mind a billionaire moving into my town if he provides 1,000 great jobs. I love rich people because they advance our society via a value exchange. You don't get jobs from poor people.



This is why I'm not big on AM as a primary revenue driver, but a complement. For example, the affiliate ads at this forum are complementary- they aren't my bread-n-butter. It's the salt on the steak.



Au contraire.

If you buy a house in Phoenix, you bought it because you felt the market UNDERVALUED it. YOU saw value. When you buy a stock, you feel it is UNDERVALUED via its stock price versus its management and earnings potential. You are speculating on your ability to be a better determinant of value, and your ability to forecast value into the future.

When I buy stock options, I am making a value bet. I bet that the price will be valued higher or lower in the future.

If I sell naked RIMM calls, I'm saying "These call options are overpriced and worth selling: this company is valued too high - the price will be lower in the future"

Every action, or non-action is a value assessment.

When you purchase an undervalued house, fix it up, and rent it for $1000/mo, you are "creating" value. Your business is also high in the business of "assessing" value.



It will make you rich if you translate it into value that others can consume.



Any time you hear someone saying "money" -- replace the word with "value" -- that helps.

Similarly, anytime I hear a politician say "we must tax the rich" -- I replace "the rich" with "the value creators".



Sometimes value can be reframed just by presentation. This is the art of assessing value. (Like in finding undervalued stocks, real estate, etc.)

Buy something at Craiglist with one blurry picture. Take it home, clean it up, paint it, do whatever; take 10 High-Def photos and relist for more. You just reframed value.

Wow. That pretty much summed it all up. Thank you.
 
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Yussef

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Wow. That pretty much summed it all up. Thank you.

I know this sounds really basic but I guess it goes back to the old adage "You must give in order to receive." Which helps to make MJ's magnet analogy make sense to me because (and I may be getting way too deep here) if money is seeking to capture a worthy owner, and you are seeking to capture money you are in fact repelling what it is that you seek. In contrast we must transform ourselves, goods and services into the very things that money (wealth) seeks to capture and in essence what we are doing is making ourselves bait by becoming value creators?

I really get this but I made it sound a little weird I think but that's just how I understand things better. Through weird analogies. This has been golden.
 

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Any time you hear someone saying "money" -- replace the word with "value" -- that helps.

Similarly, anytime I hear a politician say "we must tax the rich" -- I replace "the rich" with "the value creators".

You can look at it the other way too. =) Scammers and Money Chasers are Value DESTROYERS.

Money chasers are one level above scammers in my book. You throw out a shitty product or service as a crow bar to pry the money out of people's hands. When you open up a new business for the purpose of "lets see if we can make money". You will fail. And when you do that you just destroyed your OWN value(you lose your money on your shitty venture) and OTHER people's value(buyers remorse, "damn that product/service sucks a$$" comments from consumers).

Who can contribute more value? A janitor employee or a big a$$ corporation? This is why Entrepreneurs are usually rich because they can contribute more value than joe blow the employee who is limited.

I think ever since we were little kids we were NEVER taught that wealth is created by helping others in society(value contribution).

When someone says "money/wealth" MOST people think of stacks of benjamins, boats, mansions, fancy cars etc. NOT value contribution to strangers in society.

The more you help society the more society will help you. You see when you contribute one million dollars worth of value to society; society owes you one million dollars worth of value(lamborghinis, houses, jelly beans, hamburgers etc). This is why i say that piece of paper in your wallet is simply evidence/proof of your value contribution.

For example: when someone sells you a hamburger, you give them money. Then business that got your money now has evidence that it contributed value to YOU.

Every entrepreneur needs to get rid of this whole non sense idea of "making money" and start focusing on helping others/ contributing value.

all entrepreneurs should ask themselves: am I a value creator(quality product/services that others need) or a value destroyer(money chasers)?
 

socaldude

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A funny way to think of this is: When you have a million dollars because you contributed a million dollars worth of value to society(production). You can then convert that(consumption) to whatever you want: A million dollars worth of jelly beans or 4 lamborghinis.
 
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Yussef

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True. This is why anyone who begrudges "rich people" they are actually begrudging value creators and job creators. Class warfare is nothing but an attack on the very people who create value in our world. I'd don't mind a billionaire moving into my town if he provides 1,000 great jobs, or spends millions at the local stores. I love rich people because they advance our society via a value exchange. Rich people typically both produce and consume heavily - both are fundamental to a robust economy. You don't get jobs from poor people.

MJ I love and respect what you have created and your mind is brilliant when it comes to wealth creation..but I think I know where you were kind of going with this comment and I love rich people too (who act like they have good sense), but that does not necessarily equate to me loathing people who have less.


I believe we must be very careful as we acquire financial intellect that we do not become socially autistic. I know you didn't say this but let me clarify that all people that are wealthy are not good and all people that are poor are not bad. Nor can they all be separated into groups of job producers and job destroyers.


I really do not believe there is a class war in this country regardless of what the political spin suggest. I confess that I have my days when my employees make me feel like I would vote to make complacency a capital offense if someone caught me at that moment. But bro there have to be checks and balances so that we all can continue to have the opportunity to get this money.


I am all about free enterprise but have seen the affects first hand of what the wealthy can do to an industry they want 100% control over and have the money to influence the outcomes they want. I witnessed corporate giants zero in on mental health services in my state and convince the governor and health and human service secretary to change regulations that would basically force smaller agencies to close their doors by regulating new expenditures 3 times what they had been incurring. After these businesses closed their doors the consumers left behind had no options available but the big guys. But things did not work out as planned unfortunately. Many mental health consumers opted not to receive services from these companies which left many emergency rooms overwhelmed with manic patients. The problem has not been fixed yet and that was almost 2 years ago.


Now did the rich create jobs in this case? Yes they did. They hired many of the spill off from the smaller agencies that had to close..even did it for much less than it cost before because demand for mental health positions shot up but the supply fell drastically but in the end the people that needed the services lost out because they were robbed of their right to choose.


So yes in a sense your right you don't get jobs from poor people, but on the flip side of that coin sometime you loose the one you have to overzealous rich people. We need a healthy balance. Just my 2 cents.
 

Kak

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MJ I love and respect what you have created and your mind is brilliant when it comes to wealth creation..but I think I know where you were kind of going with this comment and I love rich people too (who act like they have good sense), but that does not necessarily equate to me loathing people who have less.


I believe we must be very careful as we acquire financial intellect that we do not become socially autistic. I know you didn't say this but let me clarify that all people that are wealthy are not good and all people that are poor are not bad. Nor can they all be separated into groups of job producers and job destroyers.


I really do not believe there is a class war in this country regardless of what the political spin suggest. I confess that I have my days when my employees make me feel like I would vote to make complacency a capital offense if someone caught me at that moment. But bro there have to be checks and balances so that we all can continue to have the opportunity to get this money.


I am all about free enterprise but have seen the affects first hand of what the wealthy can do to an industry they want 100% control over and have the money to influence the outcomes they want. I witnessed corporate giants zero in on mental health services in my state and convince the governor and health and human service secretary to change regulations that would basically force smaller agencies to close their doors by regulating new expenditures 3 times what they had been incurring. After these businesses closed their doors the consumers left behind had no options available but the big guys. But things did not work out as planned unfortunately. Many mental health consumers opted not to receive services from these companies which left many emergency rooms overwhelmed with manic patients. The problem has not been fixed yet and that was almost 2 years ago.


Now did the rich create jobs in this case? Yes they did. They hired many of the spill off from the smaller agencies that had to close..even did it for much less than it cost before because demand for mental health positions shot up but the supply fell drastically but in the end the people that needed the services lost out because they were robbed of their right to choose.


So yes in a sense your right you don't get jobs from poor people, but on the flip side of that coin sometime you loose the one you have to overzealous rich people. We need a healthy balance. Just my 2 cents.

There is definately class warfare in this country. Tax the rich and see what they do. They are not stupid! They will leave!

Using examples from businesses that downsized is a moot point. Those jobs would have never been there in the first place if it was not from a somewhat successful enetepreneur.
 

MJ DeMarco

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I am all about free enterprise but have seen the affects first hand of what the wealthy can do to an industry they want 100% control over and have the money to influence the outcomes they want.

You've responded to my comments as if they are spoken in absolutes. They are generalizations.

Sure there are many rich people (Err, I should say corporations made up of individuals) who might have acquired their wealth via predatory practices but the their numbers are far less than the rich people in this country who are starting businesses and creating value.

IMO, the value betrayal you describe evolve from the big public companies where stakeholder priorities change: Whereas a private company/entrepreneur creates customer-centric value (they have positive charge), the public company demotes the customer in favor of "shareholder value" (switching from positive to negative) ....this is where value is eroded in favor of greed and profit - the customer simply isn't the #1 priority -- money is. (Shareholders demand profits! Shareholders demand ROI! Investors need a return! Wall Street wants our earnings to grow at X%!)

A great example is Bank of FN America. I hate them and they would sell your mother for a $15 service fee. Think they care? Nope. Profit is priority - customer satisfaction isn't.
 
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Yussef

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There is definately class warfare in this country. Tax the rich and see what they do. They are not stupid! They will leave!

Using examples from businesses that downsized is a moot point. Those jobs would have never been there in the first place if it was not from a somewhat successful enetepreneur.

Downsized? Is that what they call it now? It used to be called "closed".
 

Kak

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Either or. The company wouldn't have existed without the "evil rich guy".

Crap business practices always catch up. Correct me if I am wrong Yussif, but you seem to be lurking around here with a demonized view of business.

I would argue about these companies changing the regulation that, if the regulation was not there in the first place. The market would have been better off and operating more efficiently. Obviously... Government is not a solution to business' problems. Look what it has done to itself.

Creating value is how honest businesspeople make fortunes. There is absolutely nothing wrong with creating value even if it means you have to let employees go every once in a while.
 

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So yes in a sense your right you don't get jobs from poor people, but on the flip side of that coin sometime you loose the one you have to overzealous rich people. We need a healthy balance. Just my 2 cents.

That is the price of capitalism, so if that doesn't float your boat, wait a couple more years or move to cuba (I still have 0 respect or like for you so I would prefer the later)
 
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Kak

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I am not sure what you are asking. But I guess he had to make some good money to help to support a campaign.

He has been labeled as some dishonest business a**hole through political mudslinging. He is simply a venture capitalist that had some projects that failed. Like most VC compaines, you fully expect a number of projects to fail, but, if you plan right, your successes cover your failures.

Not that I like him, but he is light years less socialist than Mr Obama. It is always about the lesser of 2 evils isn't it? I want out personally. I like GlobalWealth's train of thought.
 

Mike39

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I think he is the lesser of the evils as well, I absolutely hate comrade obama, but I'm just saying he did some messed up stuff and he hasn't felt an repercussions from it
 
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Kak

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I think he is the lesser of the evils as well, I absolutely hate comrade obama, but I'm just saying he did some messed up stuff and he hasn't felt an repercussions from it

What I meant by saying that. If a company does nothing but screw people over, how long will that company be in business? How long before someone drains them with a lawsuit? The answer is that shitty business is almost never sustainable... in a free market that is.
 

Yussef

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Either or. The company wouldn't have existed without the "evil rich guy".

Crap business practices always catch up. Correct me if I am wrong Yussif, but you seem to be lurking around here with a demonized view of business.

I would argue about these companies changing the regulation that, if the regulation was not there in the first place. The market would have been better off and operating more efficiently. Obviously... Government is not a solution to business' problems. Look what it has done to itself.

Creating value is how honest businesspeople make fortunes. There is absolutely nothing wrong with creating value even if it means you have to let employees go every once in a while.


Uh, yes Kak I must correct you. For me to "demonize" business would be shooting myself in the foot . I am a business owner! I respect your perspective on regulation, although I do not agree with it, but I think regulation is necessary in some industries, even if only minimally so.

One of the most unique and beautiful things about our country is that one can be many things at once. For example you could be the founder and ceo of a multi-million dollar company yet have a social conscious and be environmentally responsible. Or..one could be the CEO of a non profit that does a lot of social good yet he/she can be a total a$$ (outside of work) that only cares about him/herself. Whatever makes your boat float.

My point is you become "the evil rich guy" only by choice and regardless of what my personal beliefs are I think there is good in everyone, and we all have something to contribute and to be learned. That's just me.
 

Yussef

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I think he is the lesser of the evils as well, I absolutely hate comrade obama, but I'm just saying he did some messed up stuff and he hasn't felt an repercussions from it

The word "hate" is a term used only by the ignorant. So if you don't respect our democratic process here in America I will personally wire you enough money to get a passport and a one way ticket to Russia or China. ..I am only kidding with you. You have a right to your opinion.
 
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just a reminder of the no politics rule here. don't want one of the mods coming in here and smacking you all upside the head.
 

Kak

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Uh, yes Kak I must correct you. For me to "demonize" business would be shooting myself in the foot . I am a business owner! I respect your perspective on regulation, although I do not agree with it, but I think regulation is necessary in some industries, even if only minimally so.

Yussef, I respectfully understand how you may feel like this about regulation. But what I want you to do is stand back and take a look at how messed up government is. Do you really want that monstrosity regulating business freely? They don't even have their own shit together, why should they tell us what to do?

Business should be regulating government, not the other way around. These idiots can't even make a budget.

I am against either party regulating business the way they do.
 

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just a reminder of the no politics rule here. don't want one of the mods coming in here and smacking you all upside the head.
What he said. I'm here to discuss business (mostly), and the no politics or religion rule is a fantastic way to keep the discussion centered on business. If'n you don't mind, can we please just drop the political aspect.
 
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Kak

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I am not preaching politics... Government regulation and utter stupidity comes from both sides of the isle.
 

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Speaking as a mod, I am pretty close to pull the trigger. Politics will take us nowhere anyway.

Government regulation and utter stupidity comes from both sides of the isle.
Yes, we all agree. Now the question is, how do we profit from it? Otherwise, there are gazillions (yeah, real number) of forums to talk about politics out there.

So, going back to the original topic.... Are we close to a good agreement --or at least a good discussion-- about what creating value is?
 

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yeah I have to agree with the others about the politics crap. I LOVE the fact that it isnt allowed on this forum! Mj is a very smart man.

I just wanted to say that I really really enjoyed this thread and it made me think about creating value in a whole new way.

I am also going to reread the book and see what new things I see :)

thanks again Mj for all that you have done and continue to do!
 

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This is neither here nor there, but one wealthy entrepreneur told me, "Entrepreneurs and employees work at cross purposes. Employees want to extract as much money for as little work possible. Entrepreneurs want to extract more productivity for as little money possible. Eventually all employees go lame and have to be replaced." I though that that was an interesting perspective.
 

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Yussef

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Ok I have been out creating value what did I miss? Oh more politics? Let me share this thought if I may, since I am the one that started this thread.

I am pretty sure MJ is a pretty stanking rich dude with access to a lifestyle that some of us dream of having some day. Yet regardless of his political views, social status, education, religion, race, or gender here we all are with a platform to not only voice our opinions but to receive feedback from those that have been to the summit.

There are members that don't like me, but guess what, if they post some good shit I still eat it up and ask them a question or two because it's still good shit. There are members that I disagree with 99% of the time but if they drop a jewel that remaining 1% of the time...I am on it. One important thing that I have learned from being on this forum is to be malleable. MJ told me that I needed thicker skin because I was taking things way too personal. Guess what? I changed, because he was right and that not only opened my mind up to receiving more on the forum but it also helped me be a stronger leader of my company.

So in closing I want to say that $1 Trillion dollars in currency trades circle the globe everyday and I want my cut. A closed hand receives nothing and a closed mind gets even less.
 

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he gave me the same advice about taking things personally years ago! it is excellent advice!

do you trade currencies?
 

Yussef

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he gave me the same advice about taking things personally years ago! it is excellent advice!

do you trade currencies?

No I don't trade currency but have studied a little about it. My knowledge in it is very novice so I know I am not ready.
 
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What I use to think value was: Create a brand new product nobody has ever heard of and show them why they need it.

What I now think value is: Offer something people want or need.

Amen!! So true. Thanks for articulating it in a way I knew intuitively but couldn't quite state.....
 

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