Since really going in depth with my business and others, I see a lot of major sporting events as business events now.
With the Super Bowl being today and advertisers set to spend $5 million per a 30-second spot in the Super Bowl, I want to look at how this kind of extreme business dealings can be helpful for how you think about running your business.
Recent numbers have shown professional football players getting new contracts with averages around $25 million dollars per year and higher. Some people have stated that pro football players shouldn’t be getting this kind of money and while I agree, this aspect is far too extreme for our purposes here and instead we will look at the supply and demand.
This is one of the principles I discuss in my free ebook the Wealth Equation. What you need to know is that prices go up when there is a limited supply of something that is highly in demand.
There are only a very small amount of people who can do what the NLF football players do. This is a truly limited supply of a workforce with a very highly specialized skillset. This skillset is highly in demand and it produces millions for the employers of the players (the owners). Thus, this skillset is tremendously demanded and in effect very expensive.
This is why football players are making $25 million a year.
Some people have said how football players should not be making this amount of money and that the money should go to more important things. I agree and you probably do too, however the business and the people who support the NLF financially would strongly disagree, if even only with their wallets.
The business of football or professional sports for that matter is bringing in an astronomical amount of money. Again this is because the entertainment is in demand and there is only one, or a few, leagues who can satisfy this demand.
At first glimpse you can get mad at it, like so many other people have done, or you can rise above it and learn how to emulate these principles by applying them to your own business.
You do not have to become a multi-million dollar conglomerate, but if you do well at being on the right side of the Wealth Equation, then you will win.
Professional sports leagues have won the long game. You can do the same for a life-coaching business or your personal brand. In fact, this is most likely one of the best ways to win in business if you are of this profession or similar.
Specifically, the NFL or other sports leagues built a brand. They took their time and built their product. They knew that the fans would like to see entertainment like they had and they put their product out there. Not everyone was watching at first, but more and more people caught on.
When you start your personal brand, you may be an unknown with only a few or no people following you. However, you can put out a good product and keep putting it out there, over and over again. Some people won’t like you, but some will. Those are the ones who count.
Then, as you grow in popularity and gain more and more fans you will be a limited supply of a service that is in high demand. This is exactly what Tony Robbins did.
In 1980 if you tried to buy what Tony Robbins is selling right now, it would have been damn impossible. Yet, over time people grew to know and love Tony through how he has built his brand and what he stands for. He is now a limited supply and the demand is fantastic for him.
This is why he can charge so much for his services and why he can win in business.
Think about someone who needs their fridge fixed in a really small town. In this town, you are the only one who can fix the fridge and they really need you to fix it. The demand for your service is extreme, yet the supply is contrarily small. This is where you can charge any price you choose.
If you are just starting out in business, find out where you can serve those who are demanding what you have to offer most. Sometimes this works out really well and what you find is that the market does not have enough supply for the quantity of services that are provided.
Other times, you will find that building a brand is the best way to become a limited supply of something that is highly demanded. This is what the NFL did and why they are going to make a huge amount of money today. This is now them being on the right side of the Wealth Equation.
Find where your business can serve those who really demand your services. Your business depends on it.