"A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well." -Jeff Bezos
In the book, Midas Touch written by Robert T. Kiyosaki and Donald J. Trump, they explained the importance of a "brand," which reflects what you stand for. They said that without a solid brand and a willingness to let the world know about it, you won't have the Midas Touch (The ability to turn the things you touch into gold).
They gave a very realistic and clear explanation of what "brand" really means. But in this blog, I decided to share you how Robert understood what is the real meaning of a brand by his conversation with his Rich Dad.
Robert Kiyosaki and Rich Dad Conversation:
"When did you get the Rolex?" asked rich dad.
"I got it last week in Hong Kong," I (Robert) replied proudly.
"Is it a real Rolex?"
"Well, yeah," I replied hesitantly. "It's real."
With a smirk, rich dad grabbed my wrist and pulled the watch up to his face to take a closer look. "And how much was it?"
"Uh, uh, I got a good deal."
"How much was it?" rich dad asked again.
"Five bucks," I blurted out. "It's a fake Rolex."
"I thought so," said rich dad quietly. There was a long moment of silence. I could tell rich dad was collecting his thoughts.
"Why did you buy a fake Rolex?" rich dad finally asked. "Why didn't you buy a real one?"
"Because real ones are expensive." I answered.
"Do you know why pirates make cheap copies of an expensive watch?"
"Because of price? Because people want a bargain?" I offered up.
Shaking his head, rich dad asked, "Do you know how much the Rolex brand is worth?"
"No," I said, again shaking my head.
"Do you know what the Rolex brand stands for?"
"It means success," I replied. "It means you've made it. It means you've reached the top. At least that's what it means to me. That's why I bought a fake Rolex. I just wanted to look more successful."
"It means I want to be successful," I replied. "It means someday I'll own a real Rolex."
"Try again," smirked rich dad. "It means you're a fake. Only a fake would wear a fake. That's what a fake Rolex stands for."
"But a real Rolex costs a lot of money," I protested. "I just wanted to wear a Rolex and I didn't want to spend that much of money on a watch. So I bought a five-dollar Rolex. Who will know the difference?"
"You will," replied rich dad. "You know the difference. Deep down you know what the Rolex brand is worth. You know what the brand means. That's why you are willing to be fake and wear a fake."
"I don't agree," I said. "Nobody can tell the difference. I know. I inspected the watch before I bought it. It looks real."
"But you know it's not real," said rich dad sternly. "You may think you're fooling most people, but you're not fooling yourself. It's what you're saying about you that is important. And right now what you're saying about yourself is 'I'm poor. I'm not successful and I can't afford a real Rolex. So I'll buy a fake because I am a fake.'"
"Why are you being so hard on me?" I asked. "It's just a cheap watch."
"It's more than a cheap watch," said rich dad impatiently. "It's a fake watch, a knock-off, stolen property. If you are willing to buy stolen property, what does that say about you?"
I still did not get why rich dad was making such a big deal out of a watch. I knew it was a fake. I knew it was a copy made by pirates. So what? What's the problem? Who am I hurting?
I did not agree with rich dad and I didn't like what he was saying, but I was old enough and wise enough to know to keep my mouth shut and let the message sink in. I didn't need any more of his wrath. But he wasn't done with my lesson.
"If you are not a brand, you're just a commodity. You're just a faceless product floating in a world of no-name brands."
"What is wrong with being a commodity?" I asked.
"Nothing, If you're happy being a commodity," rich dad replied. "It's the difference between Bobby's Burgers and McDonald's. The McDonald's brand is worth billions. Bobby's Burgers as a brand is worth nothing. Why spend your life building a business and fail to build a brand?"
Catching his breath, or maybe reloading, rich dad let his lesson on brand versus commodity rest for a moment. I understood he wanted me to respect brands and what they stood for. I understood he wanted me to one day be an entrepreneur who turned his business into a brand. He did not want me to become just an ordinary entrepreneur.
"Do you know that just the name 'Coca-Cola' is worth more that the company's entire business? The name is worth more than all the equipment, real estate, and business systems combined," said rich dad, doing his best to have his lesson on brands sink in. "No matter where you go in the world, Coca-Cola is a brand."
"So if I wear a fake Rolex I am stealing from Rolex. Is that what you're trying to say?"
Rich dad nodded his head, adding, "And buying from people who steal from Rolex says, 'I buy stolen goods. I stole someone's good name.' And who wants to do business with someone who is dishonest, cheap, sneaky, crooked, and a phony?"
"Only people who are also dishonest, cheap, sneaky, crooked, and phony," I reluctantly answered.
"If you found out your neighbor with the nice cars and the boat was really a criminal, what would you think of him"
"Not much," I replied. "I would avoid him."
"That same kind of judgment goes on in business every day." said rich dad. "Honest people do not do business with dishonest people. Your reputation is the foundation of your brand. Guard your reputation with your life. In business, your reputation is more important than your business." With that, rich dad extended his hand towards me, palm up.
I took off the watch and dropped it into the palm of his outstretched hand. Rich dad put the watch on the floor, placed his shoe on top of the watch, and crushed it. Because it only cost five dollars, it crushed pretty easily. I got it.
This book is not about business. It's about what it takes to become a successful entrepreneur. Donald Trump and Robert Kiyosaki turned their businesses into international brands. The two men share what keeps them going when most give up and why they continue to seek greater challenges. In this book, Midas Touch, they share what gives them the Midas Touch--and how you can have it too.
Thinking of starting your own business? Already have one and want it to grow? Then before you waste any more time or any more money, you owe it to yourself, your family and the world to discover and master the five points of the Midas Touch: 1) Strength of character 2) F.O.C.U.S. 3) Brand 4) Relationships 5) Little things that count
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