Oversubscribed. Daniel Priestley

Oversubscribed - Daniel Priestley


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you don't need very many people in order to create your own market, become oversubscribed and to maintain a profitable price if you can get a few key things right and create your own fiercely loyal market.

      Being part of an open market is a problem; you'll forever be battling the forces of demand and supply outside of your control. Having a market of your own is the key to becoming oversubscribed.

      Let's take a look at actors in the US as an example of an industry in oversupply. There are more than 160,000 people who have a Screen Actors Guild (Screen Actors Guild – American Federation of Television and Radio Artists) membership and there are barely 3,000 actors who make better than minimum wage from their acting income. About 99% of actors can't afford to live on the money they earn from acting. Fewer than 1,000 actors in the US make over $150,000 a year.

      George Clooney, Brad Pitt, Sandra Bullock, Jennifer Lawrence and Julia Roberts have millions of people who will go and see a film if they are in it. They have created their own market and they are oversubscribed. Their income isn't linked to the market; it's linked to their market.

Image depicting how a popular top-earning actor gets paid more for his ability to get people to pay to see the film than the other small actors.

      Creating your own market is about solving bigger problems for people than others do. Being unique is not about performing a task at a high standard; it's about having a unique ability to get things done.

      When your business is seen to be unique in the market, you'll make money regardless of what everyone else in your industry is doing. Even if there's thousands of other people who can technically do what you do, it won't impact on the price you can charge. Your price will be determined by your own market.

      In 2019, Kylie Jenner was declared the youngest billionaire by Forbes Magazine. Management consultants would never have chosen makeup as the hot product to make a fortune in; the cosmetics industry has long been saturated with big established brands. For the 21‐year‐old entrepreneur, it didn't matter because she had amassed more than 120 million followers on Instagram who would eagerly buy whatever she featured on her profile. With a small team, basic shopping‐cart software and an absence of retail representation or glossy magazine ads, Jenner has shipped enough makeup to make her a seriously valuable brand.

      If you separate from the market and build your own market, you can generate as much money as your market will allow for.

      You must start to build your own group of loyal fans. Cultivate a tribe of people who are loyal to your business, your products, your personality and your philosophy. Rally your own troops. Break those people away from the industry, separate them one by one from the market and make them part of something special.

      We're going to explore several ways to carve out your own market.

      You'll also discover that you don't need to create a massive market for yourself in order to be oversubscribed. Being smaller can be an advantage when it comes to getting yourself oversubscribed. As I illustrated in Chapter 1, two bidders who really want something can be enough to make the price rise. A lucrative lifestyle business may need only a few thousand loyal customers – a relatively small, dedicated fan base of people who really love what you do. A $100 million enterprise might need to appeal to just 25,000 customers who passionately engage with a product that speaks directly to them.

      Rich Litvin is one of the world's most highly paid life coaches. However, you've probably never heard of him – because he only has eight key clients!

      Rich' clients pay upwards of $80,000 per year. They often pay their annual fees in advance and frequently renew with him for several years in a row. If you contact Rich Litvin and ask to become a client, he will ask you a few questions and based on how you answer he will either recommend you to another coach or he will offer you an initial interview session. If the interview goes well, you'll probably be able to start working with him in 6 to 12 months.

      Rich Litvin works exclusively with high‐flyers with a track record of success, whose decisions have far‐reaching consequences. His past clients include billion‐dollar business owners, politicians, fund managers and Olympic athletes. He doesn't need everyone to be a client; he needs eight people who want a dedicated level of service that most coaches are too busy to deliver.

      Of course, he didn't begin his career this way. Rich was originally a school teacher in London who discovered coaching as part of his training as a leader in the field of education. Seeing the impact coaching skills had on his team, he rapidly developed a passion for life coaching, but when he considered changing career he discovered there wasn't much money in it.

      Even in the US, where life coaching is more established as a profession, the average life coach earns $32.50 per hour (according to PayScale.com) and with 5–10 years of experience life coaches can expect to earn just $50,000 per year.

      Unwilling to settle for the market rate, Rich moved to LA, began mixing in the right circles and started making high‐value proposals to a select group of people. His personal philosophy and belief in coaching skills gave him the conviction that the more senior the coaching client, the more value they would receive from coaching.

      To his surprise, the top end of the market was not anywhere near as crowded as the bottom end. People who earn millions per year don't want to pay $32.50 to a coach, no matter how experienced they are. High‐achievers want a dedicated level of service and a person charging a low rate can't possibly deliver it.

      Rich differentiated himself by writing a book and building


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