How exactly did Puffy make a half a billion?

Uncle Kingpin

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of course, if he owned ciroq he'd be a multi billionaire. He does however own shares (like 50 with Vitamin Water) and that's what put him over.

I noticed Dre is the same...shares and co-founder of Beats by Dre.
Birdman - UMG shares and masters.


I noticed a trend.......

shares, shares and more shares.
Shares are good but they usually make it so you cant divest any time soon so by the time you can, the shares have been diluted and are worth pennies on the dollar
 
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Yeap - back when Badboy was selling records there was proper money to be made.
How he got the badboy label is up for discussion though!

Sean John was also pretty succesful and many people wore it. It was classier than the other hophop brands for a while.

These days the old buisness model would not have worked because albums that sold 1 mill would sell 50k.

However he made the money then and now had the capital to diversify with the market.
 

Harry B

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Making half a billion is not the same as being worth half a billion. Only thing diddy really owns is the masters to bad boy catalogue, everything else - ciroq (diageo a liqour conglomerate owns it along with smirnoff, johnnie wakler, etc) sean john (owned by the same venture capital firm that owns duane reid), etc he is a spokesman and marketer. They came up with a term for it, "brand ambassador".
He owns the right to receive half if ciroqs profit without actually taking any monetary risk..
I.e. He's in a million time better position than the owners in the short run (if ciroq failed he'd not lose a dime if they win he gets half the profit) and he's probably invested in it as well. Now in the long run ie a sale, the owner will probably profit more than him. But maybe not more than he already has profited up until that day.

And don't forget that he owns a tv network.
 
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RTF

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Making half a billion is not the same as being worth half a billion. Only thing diddy really owns is the masters to bad boy catalogue, everything else - ciroq (diageo a liqour conglomerate owns it along with smirnoff, johnnie wakler, etc) sean john (owned by the same venture capital firm that owns duane reid), etc he is a spokesman and marketer. They came up with a term for it, "brand ambassador".
He has % in publishing/royalties/shares in EVERYTHING he does. He's not stupid.
 

Young/Nacho\Drawz

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Does Diddy really get four dollars per Ciroq bottle sold?

Bad boy in its hey day had a good run. From what we've seen he saw most of the proceeds rather then his artist. Then there's the publishing. Wasn't he claiming production credits as well? What he was smart at doing was promoting Biggie as one of the greatest if not the greatest. The public and media has bought into that and he continues to profit from that to this day. Just imagine how much biggie is sampled by others. Mase sold alot records over there too. His clothing line did well. I can't front, they had some nice clothes. I speak in past tense because I don't know if it's still poppin' or not.
 

GollyImGully

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Uncle Kingpin

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He owns the right to receive half if ciroqs profit without actually taking any monetary risk..
I.e. He's in a million time better position than the owners in the short run (if ciroq failed he'd not lose a dime if they win he gets half the profit) and he's probably invested in it as well. Now in the long run ie a sale, the owner will probably profit more than him. But maybe not more than he already has profited up until that day.

And don't forget that he owns a tv network.
:russ:"Profit" is subject to the accounting, and trust me there is no way Diageo is actually giving diddy 50%. He took a failing vodka made from grapes to a national brand, and he should have ownership. they gave him a 50/50 ownership deal on a tequila called deleon, but i doubt they will allow it to be anywhere near as big as ciroc. 50 cent showed yall the blueprint with vitamin water, why make a few million as a paid spokesman when you can make a hundred million as an owner.

And as far as REvolt, that shyt is a money pit and wont make a profit anytime soon. Ask Oprah.
 

Jhoon

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he doesn't. but in rap, if youre not making progress on your embellishments, what exactly are yiu doing in your rhymes?
 

Harry B

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:russ:"Profit" is subject to the accounting, and trust me there is no way Diageo is actually giving diddy 50%. He took a failing vodka made from grapes to a national brand, and he should have ownership. they gave him a 50/50 ownership deal on a tequila called deleon, but i doubt they will allow it to be anywhere near as big as ciroc. 50 cent showed yall the blueprint with vitamin water, why make a few million as a paid spokesman when you can make a hundred million as an owner.

And as far as REvolt, that shyt is a money pit and wont make a profit anytime soon. Ask Oprah.
I don't think Puff is thinking short run with Revolt, in fact money might not even be his main objective. He's making history and building his rep which indirectly leads to more money.

All reports say that he's getting 50% of the profits unless you have some support for this not being true, I don't know why you would claim it.

As far as ownership, we don't know if he owns anything or not. And as far as 50 with Vitamin water, if Puff keeps on making 30-40 million per year of ciroq for the next 10 years he'll have made more. And if the contract is forever, he'll obviously make more as long as the brand is successful. 50 however, cleared his 100 million (and won't ever get a single dime from it) and he also took a financial risk by investing a few million or whatever. Puff has not taken any risk, he's just getting the upside. And you can't compare investing in a small vitamin water company with investing in distilleries that produces millions of bottles for international distribution.

I don't know about you but I'd rather have the chance to make half a billion by not investing a dime than investing millions and having the same chance to maybe make a bit more. But then again risk management is what I consider first.
 
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Tommy Knocks

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50 cent showed yall the blueprint with vitamin water, why make a few million as a paid spokesman when you can make a hundred million as an owner.
.
Man that Fif deal was luck and timing. I read an article on that piece...man...he made so much damn money on a failing brand. He pretty much gave it life, put in shares, so when coca cola bought it, he made over 150 million over night. It reminds me of David Choe and Facebook.

I'm currently reading this article on JayZ and Ace of Spades. I didn't know he was the one that turned a house wine into the most expensive champagne you can buy at a club. I was in Shanghai and I asked them what was the most expensive bottle they had and they showed me an Ace of Spade. I thought that shyt was ancient, some connoisseur champagne...turns out they were a no name brand until JayZ mentioned it Show Me What You Got back in 2006. :wow:

http://hyuninc.com/post/4030902219/banned-jay-z-ace-of-spades-article

Since is a small family business there's no shares to buy, but apparently he makes 50 split off each bottle. cashing in at 50 mil a year. That family owes him their lives. Cristal has been on a decline ever since.

It's still risky to do what Fif did tho (Puff and Jay went the safest route) I agree with Harry B . It works for artists that are the hottest thing at the time, but if you're just an artist, it might not work, look how Pharells liquor flopped. Also now a days things get old fast. Sells on a drink might sore for 2 years and then bam, no one mentions it. Puff worked over time to get ciroc, put that shyt in everyones hands, but he has the power and alliances to do that, and MAINTAIN it at the level. JayZ was the CEO of Def Jam at the time...he had more than enough influence, even behind the scene with 'suits' eating it up. Now you got rich ballers all over the world buying that champagne and apparently in France it was a no name, average wine LOL.
 
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