Podcasts > The School of Greatness > BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

By Lewis Howes

On The School of Greatness podcast, billionaire entrepreneur Michael Rubin delves into his mindset for building massively successful businesses. He reveals key habits that fueled his successes, like an intense work ethic, resilience in the face of failure, and a relentless focus on delivering an exceptional customer experience.

Rubin shares insights into launching and scaling new ventures, evaluating market opportunities, creating high-performing teams, and capturing greater market share. He also emphasizes the importance of giving back, having shifted from passive philanthropy to actively using his platform to drive societal change.

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

1-Page Summary

Entrepreneurial Mindset and Habits

Michael Rubin embraces failure and challenges as opportunities for growth. He maintains a determined, resilient attitude, pushing through obstacles like near bankruptcy at 16. Rubin cultivates an intense, focused work ethic, continuously seeking improvement even after major successes like selling his company for $2.4 billion.

Building and Scaling Successful Businesses

Rubin evaluates potential ventures to become billion-dollar profit centers, ensuring synergy with existing operations. He relentlessly pursues customer experience excellence through constant feedback and improvement.

Hiring and Leading High-Performing Teams

Rubin thoroughly vets candidates beyond interviews, conducting backdoor reference checks. He aims to foster collaboration, minimizing ego-driven conflict. Though not explicitly stated, Rubin likely empowers teams through ownership, coaching, and honest feedback.

Launching New Ventures and Capturing Market Share

Rubin emphasizes deeply understanding the competitive landscape, identifying opportunities to deliver superior products/services. He leverages existing assets like brand recognition, customer bases, and past successes to gain advantages in new markets.

The Importance of Giving Back and Doing Good

Rubin shifted from passive philanthropy to active involvement, believing success carries a responsibility to positively impact the world. He inspires others through leading initiatives like Reform Alliance. Rubin observes how generosity boosts businesses, creating positive "karma." He maintains an unrelenting commitment to societal improvement.

1-Page Summary

Additional Materials

Clarifications

  • A backdoor reference check is when a hiring manager or employer contacts people who are not provided as official references by the job candidate. This method is used to gain additional insights into the candidate's work ethic, personality, and performance from sources that the candidate may not have listed. It can provide a more well-rounded view of the candidate beyond what is presented in the formal application process. These checks are typically done discreetly to gather unbiased information about the candidate.
  • Synergy with existing operations means ensuring that new ventures or projects complement and enhance the current activities and resources of a business. This alignment helps in maximizing efficiency, leveraging strengths, and creating a cohesive strategy across different parts of the organization. It involves identifying opportunities where the new initiative can benefit from or contribute to the existing capabilities and market presence of the company. Ultimately, synergy aims to create a harmonious relationship between different aspects of the business to drive overall growth and success.

Counterarguments

  • Embracing failure can sometimes lead to a tolerance for inefficiency or a lack of accountability if not balanced with a strong focus on results.
  • A determined and resilient attitude is valuable, but without flexibility, it can lead to stubbornness and resistance to necessary change.
  • An intense, focused work ethic is commendable, but it can lead to burnout or work-life imbalance if not managed properly.
  • Evaluating ventures with the sole aim of becoming billion-dollar profit centers might overlook smaller opportunities that could provide value or innovation.
  • Ensuring synergy with existing operations is strategic, but excessive focus on synergy can stifle diversification and increase vulnerability to market changes.
  • Relentlessly pursuing customer experience excellence is important, but it should not come at the expense of employee well-being or other business priorities.
  • Thorough vetting of candidates is crucial, but backdoor reference checks can raise privacy concerns and may not always provide a complete picture of the candidate.
  • While fostering collaboration is essential, some level of conflict can be beneficial for innovation and critical thinking, provided it is constructive and well-managed.
  • Empowering teams is important, but there must be a balance between autonomy and guidance to ensure alignment with company goals.
  • Deeply understanding the competitive landscape is key, but it should not lead to an overemphasis on competition at the expense of originality and creativity.
  • Leveraging existing assets is smart, but relying too heavily on past successes can prevent a company from adapting to new market conditions.
  • The importance of giving back is widely recognized, but philanthropy should not be used as a marketing tool, as it can undermine the authenticity of the gesture.
  • Active involvement in philanthropy is admirable, but it should not divert attention from addressing any negative impacts a business might have on society.
  • Believing that success carries a responsibility to impact the world positively is noble, but it should not imply that those who are less successful have less responsibility to contribute.
  • Leading initiatives like Reform Alliance is inspiring, but leadership should ensure that such initiatives have measurable impacts and are not just for show.
  • The idea that generosity boosts business and creates positive "karma" can be seen as instrumentalizing good deeds for personal gain, which might not always lead to genuine or sustainable social contributions.
  • An unrelenting commitment to societal improvement is commendable, but it should be realistic and acknowledge the limitations of what one individual or organization can achieve.

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

Entrepreneurial Mindset and Habits

Michael Rubin reflects on his journey through business challenges and how he has cultivated resilience and a persistent work ethic that embraces failure as a foundation for success.

Embracing failure and challenges as opportunities for growth

Rubin speaks about the financial challenges he faced, including almost being pushed out of his company during the financial crisis of 2009. Despite the severity of the situation, he found the experience to be an "adventure" and fun, demonstrating his enjoyment in facing difficulties head-on and striving to succeed regardless of the challenges.

Maintaining a determined, resilient attitude in the face of obstacles

Rubin attributes his thick-skinned nature to his parents, who always pushed him to do better. He recalls his first major business failure at 16 and subsequent lawsuits as pivotal moments that he thought spelled the end of his world. However, he managed to settle his debts and leveraged new opportunities, like purchasing inventory from a bankrupt ski shop, to bounce back. This illustrates his belief that every failure leads to the next success, as setbacks are necessary for growth.

During a meeting at Fanatics, when a colleague spoke of several failed tests in the company’s international expansion, Rubin saw this as a chance to learn and improve, suggesting a cultural understanding within the company that setbacks are opportunities for advancement.

Rubin's early experiences with academic struggles and feeling undervalued in sports became motivations for him in business. His resilience is further exemplified by his reaction to almost going bankrupt at age 16. Rubin used this massive setback to learn, working hard to liquidate new inventory and pay back debt. Such actions display his use of setbacks not as roadblocks but as chances to improve and refocus his energy.

Cultivating a focused, driven work ethic

Rubin's commentary and his professional history demonstrate an intense dedication to business.

Staying obsessively dedicated to continuously improving one's business

Rubin recounts how after selling off the ski equipment and repaying his loan, he did not rest on his laurels. Instead, he continued to search for business opportunities, becoming the biggest buyer and seller of closeout skis and footwear, growing a business with annual revenues of $100 million. This relentless pursuit of business showed his undying hunger for progress.

After his company's value dropped to $250 million, Rubin was able to rebound and eventually sell it for $2.4 billion to eBay, showing his resilience and ability to learn from tough circumstances. His confidence during the risk of losing his company and his overall calm demeanor through poten ...

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Entrepreneurial Mindset and Habits

Additional Materials

Clarifications

  • Rubin faced challenges in academics and sports during his early years, struggling with his studies and feeling unappreciated in athletic endeavors. These difficulties influenced his journey and shaped his resilience and determination in the face of setbacks. Rubin's experiences with academic struggles and sports-related feelings of being undervalued were formative in developing his entrepreneurial mindset and work ethic.
  • After selling off the ski equipment, Rubin continued to actively seek out new business opportunities, demonstrating his persistent drive to grow and expand his ventures. This relentless pursuit of opportunities showcases Rubin's determination and ambition in the face of challenges and setbacks. Rubin's ability to quickly pivot from one venture to another highlights his agility and adaptability in the business world. This proactive approach to seeking new opportunities underscores Rubin's entrepreneurial spirit and his willingness to take calculated risks to achieve success.
  • Rubin's company experienced a significant decrease in its valuation to $250 million at one point. However, through strategic decisions and resilience, the company was able to recover and eventually be sold for a much higher valuation of $2.4 billion. This turnaround showcases Rubin's ability to navigate challenging situations and capitalize on opportunities for growth in the business world.
  • Rubin faced learning disabilities during his academic journey, which presented challenges for him. Despite these difficulties, he used them as motivation in his entrepreneurial pursuits, showcasing resilience and determination in overcoming obstacles. These challenges helped shape his mindset towards setbacks, viewing them as opportunities for growth and improvement. Rubin's experiences with learning disabilities highlight his ability to turn adversity into strength in his entrepreneurial endeavors.
  • Rubin's borrowing money to invest in new inventory showcases his willingness to take financial risks to grow his business. By borrowing funds, he was able to purchase ...

Counterarguments

  • Embracing failure as a growth opportunity can sometimes lead to a tolerance for mediocrity if not balanced with a strong sense of accountability and a clear understanding of when to pivot or quit.
  • Resilience is important, but it's also essential to recognize when persistence may turn into stubbornness, potentially causing more harm than good.
  • The idea that every failure leads to the next success can be overly simplistic, as some failures do not necessarily contribute to future success and can instead lead to repeated mistakes if not properly analyzed and understood.
  • The narrative of using setbacks as a chance to improve might not acknowledge the role of external factors and luck in recovery from failure, which can sometimes be significant.
  • An intense dedication to business and a relentless work ethic can sometimes lead to burnout or neglect of personal relationships and health.
  • The concept of staying obsessively dedicated to continuous improvement may not be sustainable for everyone and can create an unhealthy work-life balance.
  • The story of rebounding from setb ...

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

Building and Scaling Successful Businesses

Michael Rubin provides insights into what it takes to build and scale businesses that are not only successful but are structured to become billion-dollar profit centers.

Identifying large, profitable market opportunities

Evaluating the potential of a business to become a billion-dollar profit center

Rubin stresses the importance of evaluating the potential longevity and profitability of a business venture before diving in. He zeroes in on the idea that a company should have the capacity to grow into a billion-dollar profit business over time. This forward-looking assessment is crucial in his decision-making process.

Ensuring new ventures are synergistic with existing operations

Moreover, Rubin emphasizes that for any new venture to be considered, it must be synergistic with the current operations of the business. This synergy is paramount to ensure that new pursuits complement and enhance the existing business without causing disruption or conflict.

Relentlessly pursuing excellence in the customer experience

Constantly seeking customer feedback to identify areas for improvement

Rubin’s Fanatics Commerce is an example of a company that continually seeks to evolve from good to great, deeply focusing on customer experience. Rubin himself actively searches for negative feedback on social media, leaving positive comments aside, to pinpoint and act on improvement opportunities. When he encounters justified grievances, he earnestly inquires about the cause and how they can prevent such issues from reoccurring, demonstrating an obsession with excellence.

Prioritizing providing the best possible experience for the end consumer

By soliciting both positive and negative feedback, Rubin highlights the company's commitment to customer satisfaction. They scrutinize all ...

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Building and Scaling Successful Businesses

Additional Materials

Clarifications

  • Building billion-dollar profit centers involves creating and expanding businesses with the potential to generate significant profits, typically in the billion-dollar range. This process requires strategic planning, scalability, and a focus on long-term growth to achieve substantial financial success. Entrepreneurs like Michael Rubin emphasize the importance of evaluating a business's potential to reach this level of profitability before investing time and resources. By identifying and capitalizing on large, profitable market opportunities, businesses can work towards becoming billion-dollar profit centers over time.
  • Synergistic relationships between new ventures and existing operations mean that the new business endeavors should complement and enhance the current operations without causing conflicts or disruptions. This synergy ensures that the new ventures align strategically with the core business activities, leveraging existing resources, expertise, and customer base for mutual benefit. It involves seeking opportunities where the sum of the parts is greater than the individual components, creating a cohesive and integrated business ecosystem. Ultimately, the goal is to maximize efficiency, minimize risks, and drive overall growth by capitalizing on shared strengths and capabilities.
  • Rubin actively seeks both positive and negative customer feedback to improve the customer experience. He focuses on addressing any shortcomings identified through customer interactions. By prioritizing customer satisfaction, Rubin demonstrates a commitment to enhancing the overall consumer experience. His approach instills a culture of continuous improvement within the organization.
  • The emphasis on providing the best consumer experience underscores the importance of prioritizing customer satisfaction above all else in business operations. This focus involves actively seeking feedback, both positive and negat ...

Counterarguments

  • While evaluating a business's potential for billion-dollar profit is important, it can also lead to overlooking smaller, niche markets that could offer substantial, sustainable, and less volatile returns.
  • Synergy with existing operations is beneficial, but it can also limit diversification and increase risk if the core business faces downturns; sometimes, non-synergistic ventures can open up entirely new revenue streams and opportunities for innovation.
  • Actively seeking customer feedback is crucial, but focusing too much on negative feedback could skew a company's strategy towards pleasing the most vocal customers rather than the majority, potentially leading to misallocation of resources.
  • A relentless focus on customer experience is commendable, but it should be balanced with other aspects of the business, such as employee satisfaction and operational efficiency, to ensure long-term sustainability.
  • Prioritizing the best consumer exper ...

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

Hiring and Lead High-Performing Teams

In a discussion with Lewis Howes, Michael Rubin delves into the intricate process of assembling and steering high-achieving teams. The conversation reveals strategies for attracting and retaining the best people, while fostering a culture of collaboration and growth.

Attracting top talent by offering a compelling vision and culture

Howes and Rubin recognize attracting top talent as a key to successful team building. Howes probes into the initial steps of recruitment and the conversation required to inspire potential candidates to join and align with a company's vision.

Thoroughly vetting candidates beyond just the interview process

Rubin emphasizes the necessity of a meticulous vetting process that transcends ordinary interviews. He discloses his technique of conducting "backdoor reference checks," tapping into a wider circle of acquaintances rather than just the provided references to uncover the candidates' deeper working traits. Rubin acknowledges that an interview uncovers merely 50% of what's required to understand a person, hence his preference for this comprehensive screening method.

Fostering collaboration and minimizing ego-driven conflict

Rubin also points out the importance of curbing over-sized egos and ensuring new hires fit harmoniously within the existing team framework. He specifies looking for individuals who acknowledge the larger picture of their roles and work cohesively towards the firm's objectives.

Empowering team members to excel in their roles

To lead a high-performing team effectively, it's not just about searching for talent; it's also crucial to create an environment that fosters accountability and growth.

Giving team members ownership and autonomy

While Rubin does not explicitly discuss gi ...

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Hiring and Lead High-Performing Teams

Additional Materials

Clarifications

  • Backdoor reference checks involve reaching out to individuals who are not provided as official references by the job candidate to gain additional insights into the candidate's work ethic, performance, and character. This method allows employers to gather a more comprehensive understanding of a candidate beyond what may be presented in a formal interview process. It involves contacting people who have worked closely with the candidate in the past but may not have been listed as traditional referees. This approach can provide a more well-rounded view of the candidate's suitability for a role.
  • Curbing over-sized egos involves managing individuals who have an excessive sense of self-importance or superiority. It often requires promoting humility and teamwork over individual grandstanding. This practice aims to create a more harmonious and productive team environment by ensuring that all team members work together effectively without one person's ego dominating the group dynamics. Leaders may implement strategies to address ego-driven behaviors that could hinder coll ...

Counterarguments

  • While offering a compelling vision and culture is important, it may not be sufficient for all industries or roles, where factors like compensation, job security, and work-life balance can be equally or more important to potential candidates.
  • A thorough vetting process is crucial, but "backdoor reference checks" can raise privacy concerns and may not always provide an accurate representation of the candidate's abilities or character.
  • Minimizing ego-driven conflict is important, but a certain level of ego can be beneficial if it drives individuals to excel and innovate, provided it does not disrupt team harmony.
  • Empowering team members is generally positive, but without clear guidelines and expectations, it can lead to confusion and inconsistency in performance.
  • Giving team members ownership and ...

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

Launching New Ventures and Capturing Market Share

Michael Rubin, entrepreneur and business magnate, shares insights into his strategies for researching new ventures and leveraging existing assets to capture market share.

Thoroughly researching and analyzing the competitive landscape

Rubin delves into his meticulous approach to launching new ventures, emphasizing the importance of in-depth research.

Deeply understanding the strengths and weaknesses of industry incumbents

Rubin approaches market analysis by engaging with a wide array of stakeholders—company meetings, talks with analysts, and garnering a macro-level understanding of competitors are crucial parts of his strategy. He insists that an essential component of any business decision is the delivery of a superior product or service to the customer.

Identifying opportunities to deliver a superior product or service

Exploring the gambling industry, Rubin touches on Fanatics Sportsbook's expansion into 20 states. The focus is on seizing market share from industry giants like DraftKings. He suggests that providing a more attractive offering to customers is key, showcasing his determination to outperform incumbents in the space.

Leveraging existing assets and capabilities to gain an advantage

Rubin reflects on the importance of drawing from existing strengths to gain a market foothold.

Utilizing a large existing customer base and brand recognition

While not explicitly outlined in the received content, Rubin's past achievements, such as successfully scaling Fanatics and repurchasing the company, hint at his strategy of leveraging brand recognition and a substantial customer base from earlier ventures. He points out a strategic edge in gaming with 110 million customers and 70 million annual transactions that can be extended into the realm of gaming.

Drawing on past successes to build confidence in tackling new challenges

Launching Fanatics events inspired by the success of Comic-Con exemplifies how Rubin intends to use the Fanatics brand to enter new markets, such as ...

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Launching New Ventures and Capturing Market Share

Additional Materials

Clarifications

  • Leveraging brand recognition and a substantial customer base from earlier ventures involves utilizing the positive reputation and existing customer relationships established through previous successful business endeavors to create a competitive advantage in new ventures. By capitalizing on the trust and loyalty built with customers over time, entrepreneurs can more easily introduce and promote new products or services, potentially leading to quicker market acceptance and growth. This strategy allows businesses to benefit from the goodwill and credibility associated with their established brand, helping to differentiate themselves from competitors and attract a loyal customer following.
  • Rubin's creation of Fanatics events like Comic-Con and Fanatics Fest showcases his strategy of leveraging the Fanatics brand to enter new markets, such as sports events, to engage with customers and fans directly. These events serve as platforms to strengthen brand connections with ...

Counterarguments

  • While thorough research is important, it can also lead to paralysis by analysis, where too much information prevents timely decision-making.
  • Understanding the strengths and weaknesses of incumbents is valuable, but it can also result in a reactive strategy rather than an innovative, proactive approach.
  • Delivering a superior product or service is a strong strategy, but it may not be sufficient if the market is not ready or if there are barriers to adoption that haven't been addressed.
  • Leveraging existing assets and capabilities can provide an advantage, but it can also blind a company to the need for fresh perspectives or new competencies that are required in a different market or industry.
  • Utilizing a large customer base and brand recognition can be effective, but it may not always translate into success in a new venture if the brand's core values or identity do not align with the new market's expectations.
  • Drawing on past successes can build confidence, but it can also lead to overconfidence and a failure to recognize new mar ...

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BILLIONAIRE Reveals Key Habits of THE RICH! Do This NOW to Make Money & Build Wealth | Michael Rubin

The Importance of Giving Back and Doing Good

Michael Rubin, in his insightful conversation with Lewis Howes, delves deep into the idea that success carries with it the responsibility to make a significant and positive impact on the world—a philosophy that underscores a shift from passive to active philanthropy and the belief that doing good is not just a moral choice, but a business one as well.

Viewing wealth and success as a responsibility to make a positive impact

Shifting from simply writing checks to actively contributing time and effort

Rubin recounts his past approach to charity, where he would quickly write a check and move on. However, a personal event in 2017 involving a friend's experience with the criminal justice system was transformative, prompting him to become much more engaged in his philanthropic efforts. Rubin contrasts this to his previous strategy of donating money to causes and immediately returning to work, without deeper involvement.

Inspired by this eye-opening incident, Rubin took his philanthropy to new heights, including founding the Reform Alliance and hosting galas. His actions are fueled by a strong conviction that those who are fortunate have an obligation to try to improve the world, not solely with financial contributions but also with the investment of their time and personal involvement.

Inspiring others through leading by example in philanthropic initiatives

Rubin's involvement extends to initiatives like the Reform Alliance for criminal justice reform and partnerships with organizations such as the Make-A-Wish Foundation. By engaging more personally with these efforts, Rubin sets an example that inspires others. His work with Make-A-Wish, in particular, has proven to be not just fulfilling for him personally but also uplifting for his company's employees. The impact of helping children through sports-related wishes has been profound on his team.

Believing that doing good creates positive "karma" that benefits the business

Observing how acts of generosity and social consciousness can boost a company's standing

Initially concerned that his engagement with social issues might negatively affect his business, Rubin was surprised to discover that his philanthropic work led to a "karma" that boosted the company's standing. For example, a fundraiser for food insecurity during the pandemic, which Rubin feared might harm his business, instead created a halo effect, enhancing the company's reputation. He remarks that b ...

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The Importance of Giving Back and Doing Good

Additional Materials

Clarifications

  • Passive philanthropy typically involves donating money or resources without direct personal involvement. Active philanthropy, on the other hand, requires individuals to engage directly with causes, investing time, effort, and personal commitment to create a more significant impact. The distinction lies in the level of engagement and hands-on participation in philanthropic activities, with active philanthropy often leading to deeper connections and a more profound understanding of the issues being addressed. This shift signifies a move towards a more engaged and impactful approach to giving back to society.
  • The Reform Alliance is an organization co-founded by Michael Rubin and other influential figures to focus on criminal justice reform in the United States. It aims to address issues like probation and parole, advocating for changes to the system to reduce the number of people under community supervision. The organization works towards creating a fairer and more effective justice system through policy advocacy and public awareness campaigns. The Reform Alliance has been involved in various initiatives to bring about positive changes in the criminal justice system.
  • The "karma" effect on a company's standing refers to the idea that engaging in acts of generosity and social responsib ...

Counterarguments

  • The belief that success entails a responsibility to give back is not universally accepted; some argue that individuals should be free to choose how they use their wealth without moral obligations.
  • Active philanthropy, while commendable, may not always be feasible for everyone; some individuals may lack the time or skills to contribute beyond financial donations.
  • The idea that personal involvement is superior to financial contributions can be challenged; in some cases, monetary support may be more effective or necessary.
  • While Rubin's initiatives may inspire others, there is a risk of promoting a "savior complex" where the philanthropist is seen as a hero, potentially overshadowing the needs and agency of those being helped.
  • The concept of "karma" in business can be criticized as overly simplistic or superstitious, and it may not accurately reflect the complexities of how businesses and reputations are built.
  • The notion that good deeds will lead to business success could be seen as instrumentalizing charity work for personal gain, rather than being motivated by genuine altruism.
  • The emphasis on the positive impact of social consciousness on a company's reputation mi ...

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