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Motivation

50 Cent Scored Half a Billion Dollars – How 50 Made a Killing Off Water

Joel Brown (Founder of Addicted2Success.com)

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Image Credit | The Source

In “The Big Payback: The History of the Business of Hip-Hop,” author Dan Charnas traces how rap grew from its obscure roots in the ghettos of 1970s New York to its culmination as the world’s predominant youth pop culture and a multibillion-dollar industry.

The event that epitomized just how far hip-hop had come was the headline-grabbing partnership between the rapper 50 Cent and the upstart beverage company Glaceau, the maker of VitaminWater. It may well have been the biggest deal in hip-hop history, propelling 50 Cent’s personal net worth toward a half-billion dollars.

In this excerpt, Charnas outlines how it happened.

By the summer of 2003, 50 Cent’s debut album, “Get Rich or Die Tryin’,” had sold more than 5 million copies, and he was easily on his way to becoming a multimillionaire on these sales alone.

Nonetheless, the rapper from Queens, who was born Curtis Jackson and had begun his career on the reputation of being shot nine times (a bullet was still lodged in his tongue), wasn’t content to remain a recording artist.

His young manager, Chris Lighty, himself a Bronx street kid turned businessman, was well-positioned to exploit 50’s stardom by creating multiple income streams. Lighty had come out of the Def Jam fold and managed such stars as Missy Elliott and LL Cool J.

With Lighty, 50 Cent created the “G-Unit” brand, including a record company, a clothing company, and a sneaker deal with Reebok’s RBK line. The G-Unit Clothing Company was a joint-venture deal, with hip-hop-influenced designer Marc Ecko fronting the money, handling the manufacturing and distribution, and splitting the profits fifty-fifty with 50.

At his Violator management company (named after a rough crew that Lighty ran with as a kid), Lighty helped pioneer the use of 900 numbers for his artists.

Over a decade later, he negotiated a different kind of phone deal: 50 Cent cellular ringtones to be sold for up to $2.99 per download. Lighty inked other agreements, too: a video game and a biopic with MTV Films and Paramount Pictures. When the agency that represented Lighty, CAA, balked at representing a rapper so closely associated with violence, Lighty secured a deal with an eager William Morris.

One of Lighty’s business acquaintances was Rohan Oza, a marketing executive who has just moved from Coca-Cola to a small Queens, N.Y., beverage company called Glaceau. Oza considered himself not a brand manager, but a brand messiah. He believed that passionate proselytizing of his products could transcend costly corporate ad campaigns.

Oza’s Vitamin Water brand was doing well at more than $100 million in sales, second only to Pepsi’s Propel brand in the $245 million “enhanced-water” market. He knew how to take them out.

Stealing a page from the hip-hop street-team and word-of-mouth ethos, Oza created a fleet of 10 “Glaceau Vitamin Water Tasting Vehicles,” staffed by 200 “hydrologists,” to cross the country and spread the gospel of Vitamin Water’s growing line. But hydrologists working one-on-one with consumers wouldn’t break Vitamin Water out of the gourmet-deli and new-age-health-food market.

Oza needed more than brand messiahs to convert individuals. He needed brand ambassadors to influence millions. That’s when Oza saw a commercial for RBK sneakers in which Lighty, rather sneakily, had his artist, 50 Cent, chug a bottle of Vitamin Water.

In a phone call soon thereafter, Lighty told Oza that he wanted to find a way to work together to make Vitamin Water huge. It turned out that 50 Cent  had a true love of the product. He had grown up around alcoholics, so he didn’t drink. Instead, he spent hours a day working out and ate healthy. Like Oza who got bored with imbibing the recommended eight glasses of plain water a day, 50 had found Vitamin Water a more pleasurable way to hydrate.

On Oza’s desk in his New York office, at that very moment, was a test bottle of a new Vitamin Water flavor, recently formulated by Glaceau’s head of product development, Carol Dollard, who had worked hard to get more vitamins and nutrients into their drinks – much more than the 2 to 3 percent of the recommended daily allowance in other “enhanced” waters.

Recently, Oza had asked Dollard for a product that would make it easy to highlight this difference. She had returned with a flavor that contained 50 percent of the RDA of seven different vitamins and minerals. Oza’s marketing team responded with a great name for the new variety: Formula 50.

What better way to collaborate, Oza suggested, than to have 50 Cent endorse this new product? But Lighty didn’t want an endorsement deal. He didn’t want cash. “We want to invest,” Lighty said.

By 2004, 50 Cent was undoubtedly one of the world’s biggest pop stars. But it took some amount of convincing on Oza’s part to overcome the trepidation of Glaceau CEO Darius Bikoff and president Mike Repole. 50 Cent’s association with gunplay presented a problem: What if their chief spokesperson ended up dead in a rap beef?

But the 50 Cent who showed up for his first meeting with Bikoff was surprisingly different from the rapper’s public image: calm, respectful and deliberate, without too many flamboyant flourishes. Lighty was the rapper’s perfect business complement.

In the weeks and months thereafter, Lighty and Oza hammered out the terms of a deal. 50 Cent would take a stake in the privately owned company, one that would graduate over time and escalate if the company hit certain numbers.

The two entities – 50 Cent on one hand and Glaceau on the other – signed an agreement of mutual confidentiality. Still, word got around that Lighty had negotiated something close to, but not more than, 10 percent of the value of the company. During these discussions, Lighty and 50 deliberated the attributes of their new product. Oza presented the pair with several flavor options for Formula 50. For Chris Lighty, the choice was simple.

Despite the high-minded science of Glaceau, their product was basically a smarter, more upscale, more aspirational version of the ultimate ghetto beverage on which Lighty and 50 had grown up: the “quarter-waters” sold in every bodega, deli and convenience store from Queens to Compton.

The quarter-waters (so named because they once cost 25 cents) were just like the Kool-Aid everybody drank at home. However, nobody drank wild flavors like strawberry and kiwi in the ‘hood, because they drank grape. Formula 50 had to be grape. Oza hated the comparison to such base beverages, but he had to admire the thought process of his new partners.

vitamin water 50 centThe 50 Cent-Vitamin Water deal was announced in October 2004. Behind the scenes, the relationship between the two parties wasn’t always smooth. When Lighty, in one of his first interviews about the deal, spoke of building the brand with the ultimate goal of selling it, Darius Bikoff phoned Lighty, screaming at him for disclosing the strategy. Within a few hours, Bikoff looked up to find a livid Lighty in his office, glowering at him. Lighty had driven from Manhattan to Queens to tell Bikoff one thing. “Don’t curse at me,” Lighty said, a heartbeat away from becoming a Violator once more.

Once they understood each other, Bikoff and Lighty, Vitamin Water and 50 Cent built a strong alliance. Soon billboards and bus stops across the country linked the images and joined the fates of two upstarts from Queens – one a scrappy, new-age beverage company; the other a pugnacious, provocative rapper with an eye for opportunity and a history of hitching himself to winners.

In March 2007, Chris Lighty and his friend Sean Combs were riding together from Heathrow airport to a London hotel in the back of a Maybach when Combs got some news over the phone. Fellow rap superstar Jay-Z and his two fashion-entrepreneur partners, Alex Bize and Norton Cher, had just sold the rights to their Rocawear trademark to a public company, the Iconix Brand Group.

Lighty could not stop repeating the number he heard, as he stared at Combs in disbelief. “Two hundred million? Two hundred million?” Actually, at $219 million, the sale of the Rocawear brand name was, at the time, the biggest deal in hip-hop history. Combs responded in the only way he knew how. “I need a billion for mine,” he huffed. But of those two men, it would be Lighty who reached that symbolic mark first.

Just two month later, in May 2007, the Coca-Cola Company purchased Glaceau for $4.1 billion. In the media, initial reports put 50 Cent’s cashout at $400 million, calculated by dividing the purchase amount by 50 Cent’s reputed 10 percent share. But in reality, 50 Cent’s take was much less. Another stakeholder needed to be paid off first – the diversified Indian conglomerate Tata had invested $677 million for 30 percent of Glaceau in 2006, and got $1.2 billion when Coca-Cola bought them out.

When all the other costs had been deducted, 50 Cent was thought to have walked away with a figure somewhere between $60 million and $100 million, putting his net worth at nearly a half billion dollars.

On his next album, 50 Cent could barely contain his own incredulity at the power of the dollar. “I took quarter-water, sold it in bottles for two bucks,” he rapped. “Coca-Cola came and bought it for billions. What the [f#!k]?” But Lighty silently pocketed his 15 percent and kept it moving.

I am the the Founder of Addicted2Success.com and I am so grateful you're here to be part of this awesome community. I love connecting with people who have a passion for Entrepreneurship, Self Development & Achieving Success. I started this website with the intention of educating and inspiring likeminded people to always strive for success no matter what their circumstances.I'm proud to say through my podcast and through this website we have impacted over 200 million lives in the last 10 years.

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31 Comments

31 Comments

  1. Jason V

    Feb 8, 2019 at 2:53 am

    Great story!! I had no idea that 50 invested like that! Thank you for sharing!!

  2. Mohd Faiz

    Jan 24, 2019 at 4:14 am

    Great story, nice to see what happened between 50 and the situation.

  3. Harsh Tiwari

    Nov 30, 2018 at 9:39 pm

    Dedication and determination can take you a lot higher. Hence Proved!

  4. Maryjo

    Feb 17, 2016 at 6:42 pm

    Exercise regularly, at least 30 minutes of moderate exercise on most days.
    It actually depends upon the kind of individual you are, just what your situation in life
    is, and what your objectives are. Traditional cultures
    have known for thousands of years that these aspects are intimately connected.

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Motivation

Money Making a Difference – Examples of Billionaires Using Their Money for Good

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How billionaires use their money
Image Credit: Tony Hsieh

How many times have we wished to be in the shoes of a billionaire? People often daydream of having a ten digit bank account, and what they’d be doing with it. In an instant, we’d picture luxury yachts, extravagant sports cars, the finest wine and jewellery, and a whole lot of things which are difficult to pronounce. It is truly difficult to separate wealth and luxury. (more…)

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Motivation

6 Lessons You Can Learn from The King of the Jungle

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lessons you can learn from a lion
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Do you watch documentaries on lions? If yes, then you must have seen that they dominate their territory and are apex predators. Lions are among the strongest animals in the world, and no one dares to confront or challenge them. They are called ‘kings’ because they have a touch of royalty in everything they do. From eating habits where 20-25 royal members dine at the same to conquering huge lands. A lion always has a bold attitude and lives like a true ruler. (more…)

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Motivation

The Guide to Staying Motivated While Working Alone

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how to stay motivated when working alone
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Working alone at home might sound like a nightmare to some, but as a fully signed up introvert, working alone at home is an absolute dream. No energy-draining small talk, no noisy distractions, just peace and quiet to complete deep and focused work. Well not quite. Working alone at home has more challenges than you might expect. Boredom, lack of focus and lack of motivation to name a few.

When you start working for yourself, you quickly realise that one of the biggest problems you face isn’t the job itself. Maintaining your motivation poses a potentially huge difficulty. Much of that difficulty stems from working alone, rather than in a traditional office setting. There is also the challenge of staying focused on the task at hand. With no boss or supervisor looking over your shoulder, social media can distract or cat videos interrupt you.

But the greatest problem by far is a simple lack of motivation. There doesn’t seem to be a pressing need to finish this project right now, making it far too easy to put it off until later. Left unchecked, a lack of motivation can cripple the work you are trying to accomplish. Over the past few years I’ve developed a few go-to tactics to improve my lone working motivation.

Here are some of the tools I’ve used to stay motivated and on-task.

These first few tips focus on using different tweaks in your personal work schedule to provide some variety and maintain your focus.

1. Include short breaks

My eye doctor once told me that for every 20 minutes of staring at a computer screen, you should look away and focus on something across the room for 20 seconds. This gives your eyes a chance to reset. Do something similar with the rest of your body; don’t just look across the room, walk, jog, or run across the room. Give your body a break, and try to reset your thoughts. If you don’t have the discipline to take regular breaks, use an app to remind you.

2. Block out an afternoon for social activities and networking

Set aside one afternoon a week for your social life. Friday afternoon works best for me. If you feel guilty about not working, think of it as a chance to network. Either way, be sure to spend this section of time with other people. Socialise and network.

3. View your personal schedule as your work schedule

A 9-to-5 job requires getting up every morning, preparing for the day, leaving the house, and commuting to your workplace. In other words, it requires going to work. You want to recreate the same rhythm at home. You may not actually need to leave your house in order to work, but try to stick with the schedule. Filling the old job timeslot with your new work helps to keep you motivated – you can’t clock out early!

These next few tips are little things you can do to trick yourself into staying focused!

1. Music

This tip may sound cliché, but try listening to an upbeat song loudly whenever you feel unmotivated. It’s a simple trick, but a surprisingly effective one!

2. Have somewhere else to work for a change of scenery

When procrastination sets in, sometimes a quick change of scenery is all you need. If you work at home, going to your favourite café can be a huge help. Other freelancers I know have even gone so far as to hire office space outside the home, and rotate between the two to help stay on-task.

3. Love what you do

This is arguably the most critical point on the whole list. If you don’t love what you do, it will be hard to keep yourself motivated – particularly long-term. Sure, you may be able to push on through sheer force of will for a while, but sooner or later you’ll lose motivation entirely. Do something you genuinely enjoy, and you’ll find it much easier to stick with it for the long haul.

These last few tips are Industry-related!

1. Make sure you have fun projects

Not all of your work projects will be fun, but fight to make at least a couple of them fun. These might even be personal side projects, not particularly related to your main job. Or they might be in the same general field, but not your specific focus.

2. Attend industry events a couple of times a year

Nearly every imaginable industry has an organising body of some kind. Find the local branch, and use it to keep tabs on industry-related events. Attend some seminars, network, and maybe even glean some new tips and tricks from industry insiders.

3. Schedule at least one call a week to learn something within your industry

View this as an opportunity for personal development. At least once a week, try to learn something new about your industry. For me, this might mean calling a new tool provider to demonstrate their gadgets. Whatever your industry, try to expand your horizons a little bit every week. You’ll learn new methods and make new connections at the same time.

These tips worked for me, hopefully, some of them will help you out as well. Above all, strive to enjoy what you do, stick to a “work schedule,” and look for opportunities for constant self-improvement. With those ideas in mind, you’ll find staying motivated much easier to do alone or in a group!

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Motivation

7 Ways Yoga Effectively Motivates You to Achieve Success

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how yoga motivates you

Yoga is an appointment with your own self. It is time to meet your true self and receive a return ticket to your true nature that is bliss and happiness. You will naturally feel happy while doing yoga. Many people don’t realize they are in a distressed state until it’s too late. The same thing happened with me when I failed to understand my life’s circumstances. I was struggling with a lack of motivation, depression, insomnia, and maintaining my personal relationships, which eventually started affecting my physical health.

Last year, I struggled with depression and general anxiety disorder. I was constantly chasing after money, a lucrative career, happiness, and success. I was afraid that if I told my colleagues about my mental health issues, they would criticize me and eventually it would hamper my progression and I would not be taken seriously.

Last winter, my responsibilities in life increased in a short period of time, which created a lot of anxiety. It began to disturb my mood at home as I was unable to relax and felt low. I hated my own egotistical self because I was an extremely competitive individual as well. I always felt that I did not have the career of my dreams and I was not where I aimed to be. It felt like I was failing because I was not able to attain any of the goals I set in my own life.

I decided to share my emotions and feelings with someone who could potentially make things easier for me. I ended up explaining my struggles and mental illness to my manager. His reaction was amazing because he thanked me for being honest, and he introduced me to yoga. I am happy that I made this decision because it felt better after sweating it out in the Yoga workshop.

Yoga helped me in focusing on what I truly had, instead of on what I didn’t have. I learned how to embrace my competitive side and to use it in a way that pushed me to become a happier person. Yoga taught me that instead of wasting most of my life chasing after success and competing with others, I had to let life run its natural course. Happiness and success will then come to us naturally.

Below I have listed some reasons as to why yoga works effectively to motivate yourself to achieve success:

1. It Solves Your Problem

When it comes to challenges and tackling problems, yoga works amazingly. When you get on a yoga mat and begin to practice, you are made to deal with everything that comes to you and asked to face it gracefully. In turn, this increases your focus and patience levels, so that you will be able to face the mental, emotional, spiritual, and physical challenges at every turn.

2. It Lowers Your Anxiety and Stress

Yoga doesn’t mean that you will heal instantly, but constant practice can help you destress. The simple breathing and moving exercises can help a lot in releasing your tension and anxiety. 

Yoga helps in stretching your muscles by relaxing them as most of the stress and tension is stored there. The breathing exercises energize your body by increasing the blood flow, which eventually refreshes your body and mind. The daily practice of yoga makes you aware of the surroundings by making you control your emotions and stress.

“Learn to relax. Your body is precious, as it houses your mind and spirit. Inner peace begins with a relaxed body.” – Norman Vincent Peale

3. Increase Your Focus

Yoga helps improve your focus through the breathing exercises you do during the yoga postures. It relaxes the body and mind so you can think clearly, and in time build up the ability to concentrate. 

Yoga is focused on concentration, breathing,  and the alignments. Additionally, yoga’s claimed to bring mental and physical relaxation by energizing the parasympathetic nervous system, and this is the reason why yogis sleep well at night. No wonder they have such a healthy and a stress-free lifestyle.

4. It Helps in Redefining Success

Real success comes when you use yourself to your full capability. It does not matter what you become, the only thing that matters is that you are living your life to your full potential. 

If you want to be successful, then you must see everything just the way it is, without any distortion. Yoga helps you with just that. Through practicing yoga daily, you will start to see the results and live more joyfully.

5. It Boosts Your Health

Mental health affects your work and your physical health. Your physical health can drastically  affect your work as it will make you work less and take more time off, which will lead to lined-up pending assignments. 

Yoga helps your body with almost every physical problem. Yoga increases your blood flow, oxygen, and improves your circulatory system. All the postures of the Bikram yoga help to improve the flow of fresh and oxygenated blood to every part of the body and mind.

“Move your joints every day. You have to find your own tricks. Bury your mind deep in your heart, and watch the body move by itself.” – Sri Dharma Mittra

6. Gives Mindfulness and Makes You Present

Mindfulness teaches us to become more present at any given moment. It makes us more aware and conscious of our inner thoughts, feelings, emotions, and hence makes us strong enough to control our actions towards situations. 

Practicing breathing in yoga teaches you to experience and live each moment to the fullest. Over time, yoga will help you live in a deep sense of fulfillment and inner peace, which will ultimately help you in making the right decision for yourself and your team.

7. Stay Aware and Positive

A yogi tends to have a balanced outlook on life. Yoga sessions of meditations, breathing exercises, and mindfulness will aim at making you conscious and aware of yourself. Additionally,  it will open up new possibilities of understanding your true self. 

Yoga also aims at making you a positive person, and the effects of yoga are not limited to relaxation after a workout but are exceptionally long-lasting. Yoga makes you attain the attitude of gratitude that helps you identify the brighter side of life.

To achieve success through yoga, you must adapt it into your day to day life because having good health is a basic necessity to live a happy and healthy life and no one but you can keep yourself healthy.

Have you tried yoga? If so, share with us how it’s positively impacted your life below!

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