All net worth statistics published on Inside Billionaire are from wealthygenius.com. Net worth information may not be accurate.
Many people, myself likely heading the list, are fascinated by how billionaires get rich.
Fascinated for one reason only of course and I’m not shy to admit it…
I want to know how they think, where they focus, and what they do so I can benefit from this knowledge while growing my own net worth.
And it works.
It works incredible in fact. And it just makes sense. It’s obvious even. Who do you want to watch at an NBA game or in the NFL? The very best, that’s who.
Business is like a sport. Billionaires are like the lead athletes.
Want to become the best in business? Study the billionaire entrepreneurs and investors and learn from them by watching what they do.
The amount I have picked up by studying Warren Buffett alone is incredible. And Mark Cuban wow.
I’ve been studying these billionaires from all over the world for over a decade now and it’s really shaped my thinking and grown my money.
One thing that really comes out by studying these guys is that…
Most billionaires become billionaires by starting their own business.
Some did start out in investing for example Warren Buffet, Carl Icahn, George Soros, David Einhorn, Seth Klarman… these guys were all investors from the start.
But it’s not typical, and also should be understood that these guys started in the business of investing. Often founding hedge funds like David Einhorn’s Greenlight Capital or the famous Berkshire Hathaway run by Warren Buffett.
This is of course a route to becoming a billionaire. However for average people like probably you and me, starting our own business is far more practical and a less risky way to start making money.
In my opinion starting with stocks and bonds is getting your money making plan in reverse.
But I can tell you, the amount of people I meet who have lost money in stocks, lost money in bonds even, been burned by bitcoin is really crazy.
That’s not to say there is not money to made in these investments, there often is. There is just always a downside too and unless you know exactly what you are doing you could be buying into a speculation and have the bubble burst right on you.
Building a business on the other hand gives you the opportunity to express your interests online and get a reliable pay check for your efforts.
And if you study billionaires you will see that the vast majority started out with businesses. Businesses like Spanx for example.
I think Spanx is a really neat idea that provides a solution for women in that marketplace.
They help “plus-size” chicks pass as skinny. That sells.
Or another example Ralph Lauren. Starting out as a lowly salesman in one of the big department store shops, he developed his own line of menswear. He called it ‘Polo’.
There are dozens of examples, hundreds even, of men and women starting with very little and turning their often simple ideas into billions of dollars.
Spanx might be a novel idea agreed, yet for Ralpha Lauren and let’s chuck in Calvin Klein as we’re doing clothing brands. Klein has a net worth of about $700 million, Ralph Lauren $6.5 billion, and these guys weren’t doing anything particularly novel at all.
The point is these people started businesses. Either they got it right straight away or usually they had tried a number of things which didn’t work for them until they found a strategy which produced results.
Then they just keep doing it and it really takes off.
Next they begin to invest their profits in the stock market, bonds and private equity. Growing their hundreds of millions into often many billions of dollars over a period of usually ten to fifteen years.
The obvious business billionaires are people like Jeff Bezos founder of Amazon, Sergey Brin and Larry Page who founded Google, Mark Cuban who sold Broadcast.com to Yahoo! for $5.7 billion in 1999 (dug out the old CNN article from 1999).
By 2000 no one would touch online internet businesses and the bubble had burst.
A lot of billionaires made their money by getting on board new technologies and often applying them to existing things people already use.
For example Elon Musk (founder of Tesla) founded Zip2 back in 1995 which was essentially taking information found offline and putting it online.
Pretty simple, huh?
Well it was later sold to Compaq for $305 million.
Often when there are new technologies new opportunities become unearthed and opportunity is born.
A trend that can be seen now extending to apps too, while I’m not completely up on marketing apps I know it was a major business a few years ago. And even today has opportunity.
Yet still I think the best and easiest way for most people to start making money…
Is by far starting a website.
But hey I thought you said look for new technologies?
That’s true yet what I was specifically saying was look for new opportunities.
It could be a new emerging technology, or it could be the fact that now in 2019 is literally one of the best times in the history of the internet to start a blog or website.
Because suddenly the number of people online has multiplied insanely… in 2019 there are now 4.1 billion people online.
Do you know what this means?
Well I’ll tell you it means there are now literally A TON of small markets that used to be too small, too niche, to make good profit from…
Yet now with internet users exploding there are SO MANY GREAT MARKETS to make niche specific websites in.
Anything from a website about specific niche travel experiences, to all kinds of communities about just about anything you can think of.
For example if you’re into how to survive for an upcoming apolcalypse there are people in that market to serve and sell products to.
If you’re interested in specific health and wellness treatments like herbal remedies, or teaching people how to do DIY in their home, there are millions of markets ripe for starting a money making website in.
I’m bias of course because this is the method I used to make my first million and I teach you more about how on this site.
Yet the only reason I feel so bias is because I just think it’s such an awesome opportunity to be able to work from anywhere in the world and also work on a website about things you’re interested in.
And hey, you don’t always have to be super interested in a market toi go into it. We’re starting businesses after all.
I have websites in markets that I am not super passionate about it but I can still see clear ways of providing value in the market and so have a website in it.
Then there are other blogs that I’m super jazzed about like things I have in travel, and those do really well too.
Why do we make multiple websites?
You don’t actually have to you can make a very good income of one website. It is just the case that often it is quite easy to get a website to make between $100 to $250 per day selling products.
Yet often after that to make more money with the website it is actually easier to just build another one and drive that to similar profits.
What’s more if you’re anything like me you are interested in lots of different stuff so it’s fun and gives variety to into different things.
Of course you can also just create one blog as your main site and then talk about different topics and that can also work.
This method is more about creating an authority website and using it to post about a range of topics. I’ve seen it applied well, yet generally find it easier to create more specific niche sites because these will get traffic and make money faster.
There are a number of strategies yet at this point the way I do it is down to a science and I am happy to just keep on doing it.
When you find something that works, drive that thing into more profit every single day
By starting an online business you put yourself in a place that can grow from zero to millionaire, from millionaire to multi-millionaire.
Add a solid investment strategy to that and it really can result in becoming a billionaire. This has been the case with many of the billionaires on Forbes.
I am not saying that becoming a billionaire is easy in fact it seems to me that every billionaire had a healthy serving of luck…
However becoming a multi-millionaire, that is something I believe just about anyone can do.
So if you want my advice after studying the lives of billionaires and what they have done to make money, you’re best bet is certainly starting an online business.
From there you can begin to reinvest your profits into stocks, bonds and other investment instruments.
But start with something simple, start online, start by building a website based online business.