I’ve been reading Tony Robbins’ book MONEY Master the Game: 7 Simple Steps to Financial Freedom.
Tucked inside these 650 pages is a story about Richard Branson, the founder of Virgin Airways.
He knew he could out-market anyone, even his major competitor British Airways.
But rather than focus on hitting a homerun, he instead hedged his downside.
He negotiated a brilliant deal: he purchased five airplanes with the arrangement that he could give back the planes if his business did not work out.
As Tony says:
Not unlike the business world, the investment world will tell you, directly or more subtly, that if you want to win big, you’ve got to take some serious risk. Or more frighteningly, if you ever want financial freedom, you have to risk your freedom to get there.
Nothing could be further from the truth.
If there is one common denominator of successful insiders, it’s that they don’t speculate with their hard-earned savings, they strategize. Remember Warren Buffett’s top two rules of investing? Rule 1: don’t lose money! Rule 2: see rule 1.
…billionaire insiders look for opportunities that provide asymmetrick risk/reward. This is a fancy way of saying that the reward is drastically disproportionate to the risk.
Risk a little, make a lot
Having been in the entrepreneur world for almost ten years, I have observed that too many folks fail to hedge their downside and risk too much and make nothing.
One of the ways this happens is paying a fortune for sales copy, or copywriting program, when one doesn’t have a viable offer or product.
And about the cake…
To have your copywriting cake and eat it too – and risk a little to make a lot from your copy – see my Copywriter’s Notebook: Email copywriting tips for getting more clicks.