Five Lessons the Carters Have Taught Entrepreneurs on Negotiating a Deal
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Jay-Z and Beyoncé are masters at making power moves when negotiating business deals. According to Forbes, the power couple’s combined net worth is estimated at $1.4 billion. In the age of technology, streaming, and digital downloads, Beyoncé and Jay-Z have not only been able to adapt to the way the world buys music, but they’ve also skillfully used their influence to create lucrative business deals. Their business savvy speaks volumes and their net worth is proof. Here are some points behind some of the duo’s business deals:
Don’t Overlook Second Best
Jay-Z has a thing for partnering with companies that are extremely well-known, but don’t quite hold the number one position in their respective fields. For example, in 2003, Jay-Z made history with a Reebok deal. His signature shoe, the “S. Cater,” collection ended up being the fastest-selling shoe in Reebok history. He also promoted his autobiography, “Decode,” via Bing in 2010. Then in 2013, Jay-Z released his 12th studio album, Magna Carta Holy Grail, through a $5 million deal with Samsung mobile.
Equity is King
Beyoncé’s Uber deal was a chess move as she was thinking long-term and it paid off. In 2015, Uber offered Beyoncé $6 million to perform at a Las Vegas event, according to Refinery29. She reportedly turned down the cash in exchange to be paid in equity/stocks. Fours years later the rejected $6 million is now worth $300 million in stocks.
Project Your Rights
Clearly Beyoncé is not interested in playing checkers. Her forward-thinking paid off big in her deal negotiation with Coachella. Refinery29 reports that settling for $4 million for her performance, plus rights to her show allowed Queen Bey to land a $60 million deal with Netflix, which streamed “Homecoming” on their platform.
Use Your Influence
Jay-Z’s success came with his influence that he uses as leverage to negotiate business deals he would otherwise not be privy to. In 2008, he launched Roc Nation, an entertainment company that works with artists, producers, athletes, and songwriters. Later in 2013, Roc Nation Sports was founded as a way to support and advocate for athletes similar to the way they do for artists in the music industry. Their roster includes, Skylar Diggins-Smith, Dez Bryant, Victor Cruz, Kyrie Irving, and more that could be found listed on the company’s site.
Jay-Z has a knack for investing in startups that show potential. By investing early in a promising company, the payout can be life-changing in just a few short years. For example, take his investment in Uber. In 2011, the billionaire was involved in Uber’s Seed B funding round when the company had a value of $300 million, according to TechCrunch. The company has since boomed and is now valued at over $60 billion.