He said, “People like you have destroyed art. Art is not a career, it’s a calling."
An absolutely fascinating gauntlet has been tossed!
Continuing on from, “Art is not a career, it’s a calling.” he said “Its not a game, the game is the illusion that makes everybody want to make money instead of connecting with their ‘true nature’ which has nothing to do with money. I say any ‘artist’ that wants to make money should go get a job & work for a living.”
Having been the proverbial fly-on-the-wall during this recent actual conversation, I want to know what you, dear Reader, think? Would Martha Graham have been a greater dancer had she performed in obscurity and poverty? Does the amount of money a scientist makes somehow degrade her discoveries? Andy Warhol, Andrew Wyeth, Picasso, Peter Max – is their work lessened because they experienced financial success during their lifetimes?
Why do I want to know what you think? Because I feel these comments define the very heart of why the Starving Artist archetype has such devastating power over us. I see no reason why making art and simultaneously making a decent or even a stellar living are at odds.
The idea that, “artists that want to make money should go get a job & work for a living” is also puzzling to me. Is making art somehow not a job? True, making art for a living is more entrepreneurial than working a “9-5”. Successful entrepreneurs, in any field, work harder & longer hours, they take on more risk and in return often times make better a living than their salaried counterparts. Why should this not also be true for artists?
The Starving Artist archetype has a powerful hold over Creatives and as long as we allow this kind of opinion to go unchallenged it will continue to thwart our financial success. So here’s your chance to speak out against such out dated and reactionary opinion. Let me hear from you.
Does making a living from making art automatically disqualify the maker from artist status? Does remaining poor while creating automatically make the creator a “legitimate” artist? Is being an artist, creating everyday, showing and selling your art not a job?
Thursday, November 18, 2010
Wednesday, April 28, 2010
The Creative Compact
For all you pessimists out there who believe our country has lost its edge and its position as a global leader, Richard Florida, author of “Rise of the Creative Class”, has a proposal that outlines our nation’s path back to the role of respected world leader.
Florida is calling for a new Creative Compact – a Creative Economy analog to the great social compact of the 1930’s, 40s & 50s, which expanded and accelerated the Industrial Economy and led to the great golden age of prosperity.
During that time, the Industrial Society was spurred into existence by a new social compact known as the New Deal which brought capital and labor closer together, by encouraging the development of mass production unions, linking wage increases to productivity gains, by improving health and safety in the workplace, and by creating social security for older people and basic social welfare service for the truly needy.
Florida’s paper suggests that we need a new social pact, attuned to the demands of the Creative Economy. He offers 10 principles as the starting point for a much needed national and global conversation.
#1. Every Human Being is Creative
#2. Encourage Entrepreneurship across the Board
#3. Expand Innovation
#4. A Social Agenda for Creativity
#5. Restructure Education for Creativity
#6. The University as Creative Hub
#7. Make Every Community a Creative Community
#8. Leverage the Local
#9. Recommit to Openness and Diversity
#10. A Global Agenda
By devoting its energy to this kind of effort to spread the benefits of the creative economy across the globe, the United States can reclaim its status as a truly open and free society and lead the world and its people in becoming a more prosperous and less divided place. More importantly, it can reassert itself as a risk-taking society, one which encourages entrepreneurship and experimentation by caring for its people and providing for their basic security – physical, social, political, and economic.
If you’d like to read the full paper go to:
http://www.creativeclass.com/article_library/search.php?searchKeywords=creative+compact
Florida is calling for a new Creative Compact – a Creative Economy analog to the great social compact of the 1930’s, 40s & 50s, which expanded and accelerated the Industrial Economy and led to the great golden age of prosperity.
During that time, the Industrial Society was spurred into existence by a new social compact known as the New Deal which brought capital and labor closer together, by encouraging the development of mass production unions, linking wage increases to productivity gains, by improving health and safety in the workplace, and by creating social security for older people and basic social welfare service for the truly needy.
Florida’s paper suggests that we need a new social pact, attuned to the demands of the Creative Economy. He offers 10 principles as the starting point for a much needed national and global conversation.
#1. Every Human Being is Creative
#2. Encourage Entrepreneurship across the Board
#3. Expand Innovation
#4. A Social Agenda for Creativity
#5. Restructure Education for Creativity
#6. The University as Creative Hub
#7. Make Every Community a Creative Community
#8. Leverage the Local
#9. Recommit to Openness and Diversity
#10. A Global Agenda
By devoting its energy to this kind of effort to spread the benefits of the creative economy across the globe, the United States can reclaim its status as a truly open and free society and lead the world and its people in becoming a more prosperous and less divided place. More importantly, it can reassert itself as a risk-taking society, one which encourages entrepreneurship and experimentation by caring for its people and providing for their basic security – physical, social, political, and economic.
If you’d like to read the full paper go to:
http://www.creativeclass.com/article_library/search.php?searchKeywords=creative+compact
Wednesday, March 24, 2010
THE MORALITY OF SHORT SALES
Is walking away from a million dollar + home, when you’re $250,000 upside-down immoral or simply a business deal that didn’t work?
This question was put to the group of professionals attending the Real Estate Trends class at last week’s Stewart Title Success Summit, and the ensuing discussion was spirited to say the least. I love to hear what you think!
Here’s the scenario:
A family buys a beautiful new home in 2006 for $1.5M. Remember, at that point in time it was still possible to get financing based on stated income and without putting any money down. But for our purposes here let’s say the homeowner does have some skin in the game - say they put 5% down or $75,000. They move in and live happily paying the monthly mortgage as promised. Now fast forward to today.
We are well into the recession, the mortgage market has gone through some violent and not-so-violent revolution, home prices have gone down, as have interest rates. The $1.5M home is now worth much less, maybe as much as $250,000 less and if the family were in a “have to sell” situation they would be putting their home on in a glutted market with 7 years of competing inventory. They are paying a mortgage based on the $1.5M price and looking at homes down the street or around the corner that are selling at today’s depreciated prices and in a lending market with amazingly low interest rates.
So, Mr. $1.5M homeowner looks at his asset sheet and says, “Wow, I’ve got a liability here. I’m paying on a $1.5M mortgage but the house is only worth $1.25M. I could get a better interest rate, protect my credit, and fix my asset sheet. All I have to do is give this house back to the bank, let them do the short sale, and I’ll go buy that beautiful place around the corner. Oh, and by the way Mr. Banker, would you give me a loan on my new place?
This scenario is actually happening and the number of times it happens is promising to grow in numbers for the next 2-5 years depending on how one looks at the statistics.
I’m guessing that many of us can see our way to why a short sale can be a welcome relief and justifiable to the homeowner who was put into an adjustable rate mortgage on a home in the under $200K range and are now dealing with an 8% or higher interest rate. Or we feel OK with it if the homeowner lost their job, or had a medical crisis that clobbered their savings, or lost their equity in an ugly divorce or, . . .
So, does a higher price point, more generous income stream, and the ability to buy a new home at a better price and interest rate make a difference?
The other side to consider is this. The purchase of a home and the agreement to repay a mortgage is, at its heart, a business deal. At its essence, the agreement looks like this - the home-buyer says: “Bank, if you lend me the money to buy this home, I agree to pay you (fill in the blank) amount for this period of time, at this rate. And if I don’t pay you, you have the right to take control of the property in the way you see fit.”
So again I ask, the question, “Is walking away from a million dollar + home, when you’re $250,000 upside-down immoral or simply a business deal that didn’t work?”
I stand with my Managing Broker, Charles Roberts, who initially posed the question in the session last week – I’m not particularly interested in passing judgment. I’m much more fascinated by the fact that this conversation is even taking place and what it means for our society in the future.
This question was put to the group of professionals attending the Real Estate Trends class at last week’s Stewart Title Success Summit, and the ensuing discussion was spirited to say the least. I love to hear what you think!
Here’s the scenario:
A family buys a beautiful new home in 2006 for $1.5M. Remember, at that point in time it was still possible to get financing based on stated income and without putting any money down. But for our purposes here let’s say the homeowner does have some skin in the game - say they put 5% down or $75,000. They move in and live happily paying the monthly mortgage as promised. Now fast forward to today.
We are well into the recession, the mortgage market has gone through some violent and not-so-violent revolution, home prices have gone down, as have interest rates. The $1.5M home is now worth much less, maybe as much as $250,000 less and if the family were in a “have to sell” situation they would be putting their home on in a glutted market with 7 years of competing inventory. They are paying a mortgage based on the $1.5M price and looking at homes down the street or around the corner that are selling at today’s depreciated prices and in a lending market with amazingly low interest rates.
So, Mr. $1.5M homeowner looks at his asset sheet and says, “Wow, I’ve got a liability here. I’m paying on a $1.5M mortgage but the house is only worth $1.25M. I could get a better interest rate, protect my credit, and fix my asset sheet. All I have to do is give this house back to the bank, let them do the short sale, and I’ll go buy that beautiful place around the corner. Oh, and by the way Mr. Banker, would you give me a loan on my new place?
This scenario is actually happening and the number of times it happens is promising to grow in numbers for the next 2-5 years depending on how one looks at the statistics.
I’m guessing that many of us can see our way to why a short sale can be a welcome relief and justifiable to the homeowner who was put into an adjustable rate mortgage on a home in the under $200K range and are now dealing with an 8% or higher interest rate. Or we feel OK with it if the homeowner lost their job, or had a medical crisis that clobbered their savings, or lost their equity in an ugly divorce or, . . .
So, does a higher price point, more generous income stream, and the ability to buy a new home at a better price and interest rate make a difference?
The other side to consider is this. The purchase of a home and the agreement to repay a mortgage is, at its heart, a business deal. At its essence, the agreement looks like this - the home-buyer says: “Bank, if you lend me the money to buy this home, I agree to pay you (fill in the blank) amount for this period of time, at this rate. And if I don’t pay you, you have the right to take control of the property in the way you see fit.”
So again I ask, the question, “Is walking away from a million dollar + home, when you’re $250,000 upside-down immoral or simply a business deal that didn’t work?”
I stand with my Managing Broker, Charles Roberts, who initially posed the question in the session last week – I’m not particularly interested in passing judgment. I’m much more fascinated by the fact that this conversation is even taking place and what it means for our society in the future.
Monday, March 8, 2010
Easy Money
My father died 2 weeks ago & his memorial service was this past weekend. When the pomp & circumstance was complete, my siblings and I spent a few hours pouring over photographs & other memorabilia, telling old stories and for the most part laughing about the adventures and mishaps of our youth.
During our dance down memory lane I uncovered a frame that held 5 stock-transaction receipts near the top of the frame, a short poem in the center and the calculations of what could have been at the bottom. The stock receipts showed the sale of 2000 shares of Pizza Hut stock over a period of 1 year - 1975, my sophomore year of high school. Sale of 300 shares, sale of 500 shares, and so on. The last 700 shares were sold on 6/26/75 and settled on 7/3/75.
The poem goes like this:
There once was a young man named Dick
Who sold his Pepsico stock too quick
Making money had been easy
His attitude was breezy
He thought he was really slick
From this sale a lesson was learned
Easy money should never be spurned
Dick bellowed and blew
But from then on he knew
Keep good stock and you'll never be burned
And at the bottom were the split dates:
07/21/75 - 3 for 2 = 3,000 shares
11/07/77 - 1.55 for 1 = 4,650 shares
05/07/86 - 3 for 1 = 13,950 shares
08/10/90 - 3 for 1 = 41,850 shares
Dad figured those original 2000 shares would be worth about $5M today had he held onto them. What did he get in return? New siding on the house, a groovy little sports car and a 10-day family vacation to Los Angels.
My father left me many things, among them; a commitment to honesty, a thousand great memories, 4 fantastic siblings, a small gold pinkie ring with the classic 70's smiley face (the symbol of his life's guiding principle, "Think Happy Thoughts"), a very small amount of money, and this 8.5"x11" frame with a powerful reminder of what's possible when we use our cash to buy assets and then leave the assets to work their magic.
During our dance down memory lane I uncovered a frame that held 5 stock-transaction receipts near the top of the frame, a short poem in the center and the calculations of what could have been at the bottom. The stock receipts showed the sale of 2000 shares of Pizza Hut stock over a period of 1 year - 1975, my sophomore year of high school. Sale of 300 shares, sale of 500 shares, and so on. The last 700 shares were sold on 6/26/75 and settled on 7/3/75.
The poem goes like this:
There once was a young man named Dick
Who sold his Pepsico stock too quick
Making money had been easy
His attitude was breezy
He thought he was really slick
From this sale a lesson was learned
Easy money should never be spurned
Dick bellowed and blew
But from then on he knew
Keep good stock and you'll never be burned
And at the bottom were the split dates:
07/21/75 - 3 for 2 = 3,000 shares
11/07/77 - 1.55 for 1 = 4,650 shares
05/07/86 - 3 for 1 = 13,950 shares
08/10/90 - 3 for 1 = 41,850 shares
Dad figured those original 2000 shares would be worth about $5M today had he held onto them. What did he get in return? New siding on the house, a groovy little sports car and a 10-day family vacation to Los Angels.
My father left me many things, among them; a commitment to honesty, a thousand great memories, 4 fantastic siblings, a small gold pinkie ring with the classic 70's smiley face (the symbol of his life's guiding principle, "Think Happy Thoughts"), a very small amount of money, and this 8.5"x11" frame with a powerful reminder of what's possible when we use our cash to buy assets and then leave the assets to work their magic.
Wednesday, February 24, 2010
CREATING NEW WEALTH - Seek First To Understnad!
Last night I watched a Tony Robbins’ interview with Eben Pagan, Internet marketing wiz kid. I say "kid" because he's only 38 and yet he's generated millions from internet marketing of his products. His products? He started with a "how to" on dating and is now into business development, how to hire the best employees, mastermind materials and all manner of improvement e-books. The product isn't what caught my attention. What snagged me came at the end of the interview and upon hearing it all that came before slammed into place.
Eben operates from a true abundance mentality. He talks about the 80/20 rule. Traditionally this concept addresses the notion that 80% of one's income comes from 20% of one's activities. Pagan's use is radically different. Having coined the concept of “moving the free-line”, Pagan promotes the idea that by giving away for free the value that I have to offer, I still retain that value and now another person has what I gave them AND I receive more in return. For instance: I have a lit candle, which I use to light your candle. My candle is still lit and now yours is lit AND there is MORE light because 2 candles are burning. Make sense?
So how does this translate into generating Wealth? The trick is to break out of the “scarcity mindset” (there’s a finite amount of money in the world and I’m going to get my share) and re-focusing attention on creating and then providing value. Once you are providing genuine value the money will follow. How do we know what’s of value? Look for a “yes” answer to the following 3 questions:
1) Does what I’m offering alleviate a pain my target client is experiencing?
2) Is my target client actively looking to alleviate that pain?
3) Does my target client have few or zero perceived options for alleviating that pain?
If you get 3 “yes” answers then you have a product that will sell itself.
How do I come up with a product/service that provides real value? Pagan’s answer: “Seek first to understand”. Talk to your client/people in your target market and find out where their pain points are. Dive deep in the conversation with an authentic intention to discover what their needs are. Once you know what they are in search of and cannot find then you insight into what you can create/offer as a product/service.
So what is “The New Wealth” and how is it created? New wealth is money made from a product or service that provides real value and the money is generated by the principal of – when I give it away I still have it and now you have it and I’ve gained from the act of giving. The key: SEEK FIRST TO UNDERSTAND!
Eben operates from a true abundance mentality. He talks about the 80/20 rule. Traditionally this concept addresses the notion that 80% of one's income comes from 20% of one's activities. Pagan's use is radically different. Having coined the concept of “moving the free-line”, Pagan promotes the idea that by giving away for free the value that I have to offer, I still retain that value and now another person has what I gave them AND I receive more in return. For instance: I have a lit candle, which I use to light your candle. My candle is still lit and now yours is lit AND there is MORE light because 2 candles are burning. Make sense?
So how does this translate into generating Wealth? The trick is to break out of the “scarcity mindset” (there’s a finite amount of money in the world and I’m going to get my share) and re-focusing attention on creating and then providing value. Once you are providing genuine value the money will follow. How do we know what’s of value? Look for a “yes” answer to the following 3 questions:
1) Does what I’m offering alleviate a pain my target client is experiencing?
2) Is my target client actively looking to alleviate that pain?
3) Does my target client have few or zero perceived options for alleviating that pain?
If you get 3 “yes” answers then you have a product that will sell itself.
How do I come up with a product/service that provides real value? Pagan’s answer: “Seek first to understand”. Talk to your client/people in your target market and find out where their pain points are. Dive deep in the conversation with an authentic intention to discover what their needs are. Once you know what they are in search of and cannot find then you insight into what you can create/offer as a product/service.
So what is “The New Wealth” and how is it created? New wealth is money made from a product or service that provides real value and the money is generated by the principal of – when I give it away I still have it and now you have it and I’ve gained from the act of giving. The key: SEEK FIRST TO UNDERSTAND!
Tuesday, February 23, 2010
The New Wealth
Last night I watched a Tony Robbins’ interview with Eben Pagan, Internet marketing wiz kid. I say "kid" because he's only 38 and yet he's generated millions from internet marketing of his products. His products? He started with a "how to" on dating and is now into business development, how to hire the best employees, mastermind materials and all manner of improvement e-books. The product isn't what caught my attention. What snagged me came at the end of the interview and upon hearing it all that came before slammed into place.
Eben operates from a true abundance mentality. He talks about the 80/20 rule. Traditionally this concept addresses the notion that 80% of one's income comes from 20% of one's activities. Pagan's use is radically different. Having coined the concept of “moving the free-line”, Pagan promotes the idea that by giving away for free the value that I have to offer, I still retain that value and now another person has what I gave them AND I receive more in return. For instance: I have a lit candle, which I use to light your candle. My candle is still lit and now yours is lit AND there is MORE light because 2 candles are burning. Make sense?
So how does this translate into generating Wealth? The trick is to break out of the “scarcity mindset” (there’s a finite amount of money in the world and I’m going to get my share) and re-focusing attention on creating and then providing value. Once you are providing genuine value the money will follow. How do we know what’s of value? Look for a “yes” answer to the following 3 questions:
1) Does what I’m offering alleviate a pain my target client is experiencing?
2) Is my target client actively looking to alleviate that pain?
3) Does my target client have few or zero perceived options for alleviating that pain?
If you get 3 “yes” answers then you have a product that will sell itself.
How do I come up with a product/service that provides real value? Pagan’s answer: “Seek first to understand”. Talk to your client/people in your target market and find out where their pain points are. Dive deep in the conversation with an authentic intention to discover what their needs are. Once you know what they are in search of and cannot find then you insight into what you can create/offer as a product/service.
So what is “The New Wealth” and how is it created? New wealth is money made from a product or service that provides real value and the money is generated by the principal of – when I give it away I still have it and now you have it and I’ve gained from the act of giving. The key: SEEK FIRST TO UNDERSTAND!
Eben operates from a true abundance mentality. He talks about the 80/20 rule. Traditionally this concept addresses the notion that 80% of one's income comes from 20% of one's activities. Pagan's use is radically different. Having coined the concept of “moving the free-line”, Pagan promotes the idea that by giving away for free the value that I have to offer, I still retain that value and now another person has what I gave them AND I receive more in return. For instance: I have a lit candle, which I use to light your candle. My candle is still lit and now yours is lit AND there is MORE light because 2 candles are burning. Make sense?
So how does this translate into generating Wealth? The trick is to break out of the “scarcity mindset” (there’s a finite amount of money in the world and I’m going to get my share) and re-focusing attention on creating and then providing value. Once you are providing genuine value the money will follow. How do we know what’s of value? Look for a “yes” answer to the following 3 questions:
1) Does what I’m offering alleviate a pain my target client is experiencing?
2) Is my target client actively looking to alleviate that pain?
3) Does my target client have few or zero perceived options for alleviating that pain?
If you get 3 “yes” answers then you have a product that will sell itself.
How do I come up with a product/service that provides real value? Pagan’s answer: “Seek first to understand”. Talk to your client/people in your target market and find out where their pain points are. Dive deep in the conversation with an authentic intention to discover what their needs are. Once you know what they are in search of and cannot find then you insight into what you can create/offer as a product/service.
So what is “The New Wealth” and how is it created? New wealth is money made from a product or service that provides real value and the money is generated by the principal of – when I give it away I still have it and now you have it and I’ve gained from the act of giving. The key: SEEK FIRST TO UNDERSTAND!
Subscribe to:
Posts (Atom)
