You say that much of the business savvy that allowed Jay-Z to build a $450 million fortune was developed on the street. How so?
When you’re selling drugs, you could say it’s like selling anything. You learn basic laws of supply and demand. You learn how to get a loyal customer base.
But I think the most valuable part was that when you come from a place where you’re dealing with people who might kill you, it’s a lot easier to go into a boardroom and not feel intimidated. That’s one reason why, early in his career, you see Jay-Z negotiating very boldly in a way he might not have if he’d been a typical artist awe-struck by the big time.
The music business has changed radically. What has he learned from that?
He has a nose for money. And not just for where it is, but for where it’s going to be. That’s what led him away from drugs and into the music business in the late ’90s, which was the height of it. Then he realized there was money to be made in apparel, so he started Rocawear, and sold it right at the peak, in 2007. Then he caught the wave of these huge deals Live Nation was giving out, and signed a $150 million touring deal. So he’s always done a good job of figuring out where the next big thing will be and positioning himself in to make money off of it.
Is he successful at everything he does?
Definitely not. He’s made numerous deals that have fallen through. But he’s been successful at sweeping that under the rug. Nobody dwells on Jay-Z’s failures.
What could the average guy take from Jay-Z’s example?
Here’s a guy who went from having to go to friends’ houses for dinner because there’s no food at home to having anything anybody could ever want. But the best lesson is, even Jay-Z fails. Don’t get dejected if you’ve been failing; Jay-Z did that, too, and look where he is now.