The title of this video might seem like its a click bait, but it's not, because we are
actually going to look at a practical way to become a billionaire.
But to answer our question, we have to figure out what do all billionaires have in common.
They have built monopolies in their respective industries.
The process of making a monopoly is pretty much the same in every industry,
So, today we will take a look on how to build a monopoly!
Of course, you probably won't be able to monopolize the gasoline market as John Rockefeller did
over a hundred years ago, because the competition is fierce, and competing against nations with
more oil reserves is a recipe for disaster.
However, if you careful build your way up, you might stand a chance to monopolize at
least a niche in any other industry.
Competition is good for customers, but it sucks for businesses.
For example, ford had a revenue of 156 billion dollars in 2017, but its net income was only
7.6 billion, while facebook who has monopolized social media made over twice that amount (15.6
billion) with a significantly smaller revenue 40.6 billion dollars.
Wait for a second, aren’t monopolies are illegal?
Yes, they are.
But You have to be a fool to appear like you are a monopoly.
A good strategy would be to acquire your competitors silently as if you have nothing to do with
them or get into different industries as if you a tiny fish in a vast ocean.
We all know Amazon as an online retailer, but behind the scenes, it has purchased over
70 other companies that you never heard of, they appear like they are competing in entirely
different industries, but they all serve amazon ’s objective for world dominance.
If no one can give you a small loan of a million dollar, don’t worry, to build a monopoly,
it's better to start small.
You don’t want to think big, Your job is to dominate a small tiny niche where everyone
would come to you for that.
If you merely improve an existing product or service, your neighbors will duplicate
that the next day, so that won't work unless you significantly improve the quality and
lower your prices such as standard oil.
So, your best option is to provide a solution to a problem that people aren’t even aware
of.
For example, We were perfectly fine before the existence of youtube, but today its an
essential part of our life.
When Amazon started, they didn’t aim to sell everything to everyone online but focused
on shipping books.
Once the idea proved itself, they began selling a bunch of other things.
However, you have to keep in mind that your idea should be scalable since the beginning.
If your business won't get stronger as it grows bigger, you re doomed to fail.
For example, for a wallmart to get new customers, they will have to spend millions to build
another store but for Amazon, it costs almost nothing, and a new customer is simply few
clicks away.
And that's the case with every other monopoly that exists (google, facebook, ber).
They only get stronger and efficient as their number of users grow.
Their power lies on their scalability because that's what prevents new competitors to take
over them.
However, Becoming a monopoly isn’t as difficult as staying a monopoly.
Many have conquered industries and rose to the top, but lost their innovative spirit
along the way, so were brought down by new rivals.
That's why you should acquire your potential competitors while they are still small like
facebook does.
Instagram had all the chances to break Facebook's monopoly, but Facebook gave them an offer,
they couldn't refuse.
The same thing happened to WhatsApp and messenger.
In case, if your competitors aren’t willing to work with you, you should shut them down
while you still can.
Otherwise, your downfall might be on a horizon.
When snapshot refused facebook’s offer, Facebook turned Instagram into a snapshot
killer, and its valuation is falling ever since.
John Rockefeller would invite his competitors and show them his books so that they could
see he can operate longer at a loss than they can survive and then make them an offer they
will have to accept.
With these 3 rules in your mind, you can start your journey of building a monopoly.
So, which industry would you, let me know in the comments below.
Let's see who has the best idea.
And that's it for this video, give this video a huge like if you have enjoyed this video
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Thanks for watching and I will catch you in the next one.