Article The 50 Cent Machine Forbes Article

reeuQ A sI emyaG · 08-18-2008, 09:24 AM

August 18, 2008

When it comes to records, 50 Cent knows what it takes to go platinum. But in a mine shaft thousands of feet below the surface of South Africa, he's got metal, not vinyl, on his mind.

Last May, 50 paid a visit to billionaire mining baron Patrice Motsepe in South Africa. Flanked by select members of their respective entourages, the unlikely duo descended into a subterranean trove of platinum, palladium and iridium, growing like moss on the earth's warm innards. A spectacular backdrop for a bling-drenched music video, to be sure.

But 50 was there for other business: to forge a joint venture with Motsepe that could soon bring him an equity stake in the mine--and 50 Cent-branded platinum to the world.

"Things that people wouldn't actually expect me to be involved in," 50 muses a few weeks later, reminiscing on his trip. "I've got a diverse portfolio."
In Pictures: Inside The 50 Cent Machine

Here, in the comfort of a midtown Manhattan office, just miles from the Queens, N.Y., streets where 50 once dealt cocaine, the glowering rapper whose lyrics are often punctuated with gunshots is nowhere to be found. In his place is Curtis Jackson, businessman. Less gangster, more Gordon Gekko, he ticks through the contents of his portfolio: stocks, bonds, real estate, investment pools, all carefully monitored by brokers at Goldman Sachs (nyse: GS - news - people ) and Morgan Stanley (nyse: MS - news - people ).

Over the past 12 months, 50 has added $150 million to his substantial coffers. He hawks clothing, sneakers, videogames, movies, ringtones and flavored water. His earnings were nearly twice as much as last year's hip-hop cash king, Shawn "Jay-Z" Carter, and over four times the sum garnered by Sean "Diddy" Combs, who ranked third for the second year in a row. After topping Forbes' inaugural Cash Kings list, the trio released a modified version of 50's "I Get Money" called "The Forbes 1-2-3 Remix."

Diversification is crucial for rappers. Record sales are declining, new media are playing havoc with the music industry, and it seems unlikely that hip-hop acts will ever lure stadiums of deep-pocketed baby boomers with the ease exhibited by geriatric rockers such as the Rolling Stones and the Police.

Perhaps as a hedge, Jay-Z signed a 10-year, $150 million deal with concert promoter Live Nation (nyse: LYV - news - people ) in April. Kanye West headlined the traditionally rock-focused music festival Lollapalooza in Chicago earlier this month. 50 is looking to secure his own long-term relevance with deals like the one currently in the works with Motsepe.

"The financials of the music business have changed to the point that we have to find ways to make money in other places," says Barry Williams, 50's circumspect brand manager. "I didn't think six years ago when we started trying to sell music that we'd be selling VitaminWater and shoes and clothes. Now we're moving into other directions, and four or five years from now, it's exciting to think about us looking at natural resources and raw materials and other businesses."

50's first mega-deal was completed a year ago. He snagged $100 million when Coca-Cola (nyse: KO - news - people ) bought Glacéau, VitaminWater's parent company, for $4.1 billion. The rapper had received a stake in Glacéau as compensation for peddling the "Formula 50" VitaminWater flavor. He'd continued to add to his holdings as the years went on. Although observers praised 50's financial foresight as soon as the deal was announced, he was far from satisfied.

"People were talking about how much money I made, but I was focused on the fact that $4.1 billion was made," says 50. "I think I can do a bigger deal in the future."

Looking one step ahead of the business has always one of 50's trademark traits. He grew up rough in Jamaica, Queens, in the midst of the 1980s crack epidemic. His mother, a drug dealer, was murdered when he was 8; soon after, he began running cocaine for his uncles. He realized he could make more money by charging a markup in the neighborhood of 25%. This precocious business sense earned him plenty of dollars--and three arrests--by age 19. He avoided jail time by agreeing to attend a six-month, military-style boot camp in upstate New York.

Returning to Queens, the fledgling rapper scored a $65,000 deal with Columbia Records. But in 2000 his past caught up with him. Days before his first album, Power of the Dollar, was set to hit stores, 50 was shot nine times and left for dead in front of his grandmother's house. Columbia dropped him, and the record was never released, though it has since been heavily bootlegged. Undeterred, he returned to the studio as soon as he recovered from his wounds. He started churning out "mix tapes," which are informally circulated at parties, and soon he had become an underground rap sensation.

The tapes earned him a following--and a big break. In 2002 star rapper Marshall "Eminem" Mathers heard his driver playing one of 50's songs. Eminem was so impressed with the music that he invited 50 to Los Angeles to meet with him and producer Andre "Dr. Dre" Young. Within days, they signed 50 to a million-dollar deal for five albums.

But from the start, 50's career was more about business than music. He spent his first $300,000 registering the "50 Cent" and "G-Unit" trademarks; in 2003 he brought on veteran talent manager Chris Lighty to head up his business entourage. Today, Lighty is part of an informal board of directors for brand 50 Cent. The team helps 50 sort through endorsement offers, brainstorm new ideas and operate his businesses.

At the top of that pyramid is 50 himself. Ask any of his associates what sets him apart, and they'll all tell you it's his fiendish work ethic. In a recent 24-hour span, he started by filming scenes for Streets of Blood from 7 p.m. to 7 a.m. (He will star in the flick, due out next year, alongside Val Kilmer and Sharon Stone.) He then went straight to the mobile recording studio he keeps on set and worked on his new album for four to five hours. After snagging a few hours of sleep, he went right back to the studio.

"I don't think he'll ever stop working," says Laurie Dobbins, chief operating officer of Lighty's company, Violator Management. "He's got the work ethic of a robot. I think he works 24 hours a day."

50 will always be a performer. While he spent the daytime hours of his Africa tour kibitzing with the likes of Motsepe and Nelson Mandela, nights brought concerts--and crowds upwards of 100,000. He watched as his music broke the language barriers between scores of local dialects. He says the rush he gets from performing is the reason he doesn't need drugs. But don't be confused about where his priorities lie.

"Closing a deal," he says, "is a bigger deal."

The hip-hop entourage isn't always a diamond-encrusted crew of gun-toting thugs. Not for Curtis (50 Cent) Jackson, who pulled in $150 million (pretax) last year. His retinue is strictly business—managers, marketers and publicists. They help him oversee an empire that includes branded clothing, sneakers, movies, videogames, ringtones, a record label, international tours and, soon, a line of dietary supplements. His biggest one-shot gain: $100 million, after taxes, from last year's sale of his stake in VitaminWater parent Glacéau to Coca-Cola. For 50 Cent that's just an incentive to make more money. "I can do a bigger deal," he says. Rumored: a $300 million agreement with MySpace.
Chris Lighty
Manager

Fifty's right-hand man, involved in all licensing, joint venture deals; blocks bad endorsements. Has his own talent management agency, Violator.

Nikki Martin
G-Unit VP

Oversees stable of artists on Fifty's record label. Helps run his 250,000- member ThisIs50.com, a social network and fan club.

Barry Williams
Brand Manager

Chief communicator. Keeps all of Fifty's businesses informed of his latest mandates. Also helps scout out new investments.

Keesha Johnson
Publicist

Fields press inquiries; sets up interviews, photo shoots. Also flacks for Sean (Diddy) Combs and Kimora (Life in the Fab Lane) Lee Simmons.

Laurie Dobbins
Violator Coo

Works under Lighty, handles Fifty's day-to-day operations and those of other artists managed by Violator.

Theodor Sedlmayr
Attorney

Takes care of all licensing, contracts, trademarks. Keeps his boss far from trouble.

Source: Forbes.com

robby84 · 08-18-2008, 09:35 AM

it was just a matter of time...nigga is a paper chaser..my nigga

DOJA FLOPS HARD · 08-18-2008, 09:39 AM

50 is god. king 50 should start his own religion.

50 will one day be the richest man in the world.

robby84 · 08-18-2008, 09:41 AM

Quote:

Originally Posted by DOJA FLOPS HARD

50 is god. this nigga should start his own religion.

LMAOOOO..easy buddy..lets not stan that far my nigga...

congrats to fif & he should thank his haterz on this one..

young_v1t0_ · 08-18-2008, 09:42 AM

a well respected businessman in my book
if i could do business like anyone from hip-hop
him & jay would by my two influences definitely....

DOJA FLOPS HARD · 08-18-2008, 09:46 AM

Quote:

Originally Posted by robby84

LMAOOOO..easy buddy..lets not stan that far my nigga...

congrats to fif & he should thank his haterz on this one..

aight my nigga

jg213 · 08-18-2008, 10:15 AM

Quote:

Originally Posted by young_v1t0_

a well respected businessman in my book
if i could do business like anyone from hip-hop
him & jay would by my two influences definitely....

gotta agree with you on that shit

CBCBCB · 08-18-2008, 10:18 AM

Quote:

Originally Posted by doja flops hard

50 is god. King 50 should start his own religion.
50 will one day be the richest man in the world. 50 got enough money to give yayo 100 million and not even think about it.

lmaoooooooo....................anyway much respect to 50...

Blizzy · 08-18-2008, 10:30 AM

this is why he's never in the streets...he gettin that president paper...

*50*CENT*WIFE* · 08-18-2008, 11:01 AM

Thats wassup ;)

ScorpiO.G. · 08-18-2008, 11:44 AM

fif be gettin it no wonder his music is wack sounds like he has no time to write it

Majcip · 08-18-2008, 11:47 AM

definetly paper chaser

Hakaroodi · 08-18-2008, 11:59 AM

Get um fif..!!

R.o.B · 08-18-2008, 12:26 PM

Quote:

Originally Posted by young_v1t0_

a well respected businessman in my book
if i could do business like anyone from hip-hop
him & jay would by my two influences definitely....

real talk...

Fo_Shizzle · 08-18-2008, 01:06 PM

damn...50 got money to burn

harlemAL82 · 08-18-2008, 01:13 PM

Quote:

Originally Posted by ScorpiO.G.

fif be gettin it no wonder his music is wack sounds like he has no time to write it

A gun in ya face and dats all you can come wit.

KingBart · 08-18-2008, 02:15 PM

He do be stackin chips. But on another note doja flops hard man chill dude I luv the Unit 2 I b on here every day as a guest just lookin at what yall say man most the people here like the Unit but u b on sum other shit man 4real stop it

gangstabone23 · 08-18-2008, 03:20 PM

50 is the man when it comes to money, dude is opposite to what scott storch is.

08-18-2008, 09:24 AM	#1
reeuQ A sI emyaG Banned Join Date: Feb 2008 Location: MUTHA FUCKA IM AS BIG AS BEING BIG GETS! Posts: 1,176 Thanks: 141 Thanked 3,665 Times in 415 Posts	The 50 Cent Machine Forbes Article The 50 Cent Machine Forbes Article August 18, 2008 When it comes to records, 50 Cent knows what it takes to go platinum. But in a mine shaft thousands of feet below the surface of South Africa, he's got metal, not vinyl, on his mind. Last May, 50 paid a visit to billionaire mining baron Patrice Motsepe in South Africa. Flanked by select members of their respective entourages, the unlikely duo descended into a subterranean trove of platinum, palladium and iridium, growing like moss on the earth's warm innards. A spectacular backdrop for a bling-drenched music video, to be sure. But 50 was there for other business: to forge a joint venture with Motsepe that could soon bring him an equity stake in the mine--and 50 Cent-branded platinum to the world. "Things that people wouldn't actually expect me to be involved in," 50 muses a few weeks later, reminiscing on his trip. "I've got a diverse portfolio." In Pictures: Inside The 50 Cent Machine Here, in the comfort of a midtown Manhattan office, just miles from the Queens, N.Y., streets where 50 once dealt cocaine, the glowering rapper whose lyrics are often punctuated with gunshots is nowhere to be found. In his place is Curtis Jackson, businessman. Less gangster, more Gordon Gekko, he ticks through the contents of his portfolio: stocks, bonds, real estate, investment pools, all carefully monitored by brokers at Goldman Sachs (nyse: GS - news - people ) and Morgan Stanley (nyse: MS - news - people ). Over the past 12 months, 50 has added $150 million to his substantial coffers. He hawks clothing, sneakers, videogames, movies, ringtones and flavored water. His earnings were nearly twice as much as last year's hip-hop cash king, Shawn "Jay-Z" Carter, and over four times the sum garnered by Sean "Diddy" Combs, who ranked third for the second year in a row. After topping Forbes' inaugural Cash Kings list, the trio released a modified version of 50's "I Get Money" called "The Forbes 1-2-3 Remix." Diversification is crucial for rappers. Record sales are declining, new media are playing havoc with the music industry, and it seems unlikely that hip-hop acts will ever lure stadiums of deep-pocketed baby boomers with the ease exhibited by geriatric rockers such as the Rolling Stones and the Police. Perhaps as a hedge, Jay-Z signed a 10-year, $150 million deal with concert promoter Live Nation (nyse: LYV - news - people ) in April. Kanye West headlined the traditionally rock-focused music festival Lollapalooza in Chicago earlier this month. 50 is looking to secure his own long-term relevance with deals like the one currently in the works with Motsepe. "The financials of the music business have changed to the point that we have to find ways to make money in other places," says Barry Williams, 50's circumspect brand manager. "I didn't think six years ago when we started trying to sell music that we'd be selling VitaminWater and shoes and clothes. Now we're moving into other directions, and four or five years from now, it's exciting to think about us looking at natural resources and raw materials and other businesses." 50's first mega-deal was completed a year ago. He snagged $100 million when Coca-Cola (nyse: KO - news - people ) bought Glacéau, VitaminWater's parent company, for $4.1 billion. The rapper had received a stake in Glacéau as compensation for peddling the "Formula 50" VitaminWater flavor. He'd continued to add to his holdings as the years went on. Although observers praised 50's financial foresight as soon as the deal was announced, he was far from satisfied. "People were talking about how much money I made, but I was focused on the fact that $4.1 billion was made," says 50. "I think I can do a bigger deal in the future." Looking one step ahead of the business has always one of 50's trademark traits. He grew up rough in Jamaica, Queens, in the midst of the 1980s crack epidemic. His mother, a drug dealer, was murdered when he was 8; soon after, he began running cocaine for his uncles. He realized he could make more money by charging a markup in the neighborhood of 25%. This precocious business sense earned him plenty of dollars--and three arrests--by age 19. He avoided jail time by agreeing to attend a six-month, military-style boot camp in upstate New York. Returning to Queens, the fledgling rapper scored a $65,000 deal with Columbia Records. But in 2000 his past caught up with him. Days before his first album, Power of the Dollar, was set to hit stores, 50 was shot nine times and left for dead in front of his grandmother's house. Columbia dropped him, and the record was never released, though it has since been heavily bootlegged. Undeterred, he returned to the studio as soon as he recovered from his wounds. He started churning out "mix tapes," which are informally circulated at parties, and soon he had become an underground rap sensation. The tapes earned him a following--and a big break. In 2002 star rapper Marshall "Eminem" Mathers heard his driver playing one of 50's songs. Eminem was so impressed with the music that he invited 50 to Los Angeles to meet with him and producer Andre "Dr. Dre" Young. Within days, they signed 50 to a million-dollar deal for five albums. But from the start, 50's career was more about business than music. He spent his first $300,000 registering the "50 Cent" and "G-Unit" trademarks; in 2003 he brought on veteran talent manager Chris Lighty to head up his business entourage. Today, Lighty is part of an informal board of directors for brand 50 Cent. The team helps 50 sort through endorsement offers, brainstorm new ideas and operate his businesses. At the top of that pyramid is 50 himself. Ask any of his associates what sets him apart, and they'll all tell you it's his fiendish work ethic. In a recent 24-hour span, he started by filming scenes for Streets of Blood from 7 p.m. to 7 a.m. (He will star in the flick, due out next year, alongside Val Kilmer and Sharon Stone.) He then went straight to the mobile recording studio he keeps on set and worked on his new album for four to five hours. After snagging a few hours of sleep, he went right back to the studio. "I don't think he'll ever stop working," says Laurie Dobbins, chief operating officer of Lighty's company, Violator Management. "He's got the work ethic of a robot. I think he works 24 hours a day." 50 will always be a performer. While he spent the daytime hours of his Africa tour kibitzing with the likes of Motsepe and Nelson Mandela, nights brought concerts--and crowds upwards of 100,000. He watched as his music broke the language barriers between scores of local dialects. He says the rush he gets from performing is the reason he doesn't need drugs. But don't be confused about where his priorities lie. "Closing a deal," he says, "is a bigger deal." The hip-hop entourage isn't always a diamond-encrusted crew of gun-toting thugs. Not for Curtis (50 Cent) Jackson, who pulled in $150 million (pretax) last year. His retinue is strictly business—managers, marketers and publicists. They help him oversee an empire that includes branded clothing, sneakers, movies, videogames, ringtones, a record label, international tours and, soon, a line of dietary supplements. His biggest one-shot gain: $100 million, after taxes, from last year's sale of his stake in VitaminWater parent Glacéau to Coca-Cola. For 50 Cent that's just an incentive to make more money. "I can do a bigger deal," he says. Rumored: a $300 million agreement with MySpace. Chris Lighty Manager Fifty's right-hand man, involved in all licensing, joint venture deals; blocks bad endorsements. Has his own talent management agency, Violator. Nikki Martin G-Unit VP Oversees stable of artists on Fifty's record label. Helps run his 250,000- member ThisIs50.com, a social network and fan club. Barry Williams Brand Manager Chief communicator. Keeps all of Fifty's businesses informed of his latest mandates. Also helps scout out new investments. Keesha Johnson Publicist Fields press inquiries; sets up interviews, photo shoots. Also flacks for Sean (Diddy) Combs and Kimora (Life in the Fab Lane) Lee Simmons. Laurie Dobbins Violator Coo Works under Lighty, handles Fifty's day-to-day operations and those of other artists managed by Violator. Theodor Sedlmayr Attorney Takes care of all licensing, contracts, trademarks. Keeps his boss far from trouble. Source: Forbes.com

08-18-2008, 09:35 AM	#2
robby84 Super Moderator Join Date: Nov 2006 Location: Born/Raised in Queenz NYC Now Livin in Y.O. Posts: 7,747 Thanks: 2,788 Thanked 13,347 Times in 979 Posts	it was just a matter of time...nigga is a paper chaser..my nigga __________________ Most loved/Hated Moderator "Stop Bitchin" - Robby

08-18-2008, 09:42 AM	#5
young_v1t0_ I UsE BlUnTz 4 PeNz Join Date: Aug 2007 Location: --In ThE SmOkErZ NoTePaD-- Posts: 1,797 Thanks: 472 Thanked 765 Times in 152 Posts	a well respected businessman in my book if i could do business like anyone from hip-hop him & jay would by my two influences definitely.... __________________ "Rollin Blunts Is A "Art" And With That Said My "Masterpiece" Is Made Of Brown Leaf And Buds Thats Red (Hairs) - ArSoN

08-18-2008, 10:30 AM	#9
Blizzy Certified Substance Join Date: May 2008 Location: The Realm Called Earth Posts: 1,860 Thanks: 517 Thanked 171 Times in 41 Posts	this is why he's never in the streets...he gettin that president paper... __________________ MY MUSIC CHECK IT OUT myspace.com/ttpbloodshot

08-18-2008, 11:01 AM	#10
50CENTWIFE THIS IS 50 ;)~ Join Date: Jan 2005 Location: IT DEPENDS LOL ;)~ Posts: 15,229 Thanks: 2,205 Thanked 631 Times in 65 Posts	Thats wassup ;) __________________ B.I.S.D 09 ;)

08-18-2008, 09:39 AM	#3
DOJA FLOPS HARD Banned Join Date: Mar 2008 Location: Crime side of NY Southside Posts: 1,464 Thanks: 287 Thanked 291 Times in 44 Posts	50 is god. king 50 should start his own religion. 50 will one day be the richest man in the world.

08-18-2008, 11:44 AM	#11
ScorpiO.G. Join Date: Mar 2007 Location: Northern Ireland Posts: 551 Thanks: 32 Thanked 0 Times in 0 Posts	fif be gettin it no wonder his music is wack sounds like he has no time to write it

08-18-2008, 11:47 AM	#12
Majcip Join Date: Nov 2007 Location: SK Posts: 674 Thanks: 182 Thanked 34 Times in 6 Posts	definetly paper chaser __________________ Before I Self Destruct - 9. december movie and album in stories

08-18-2008, 11:59 AM	#13
Hakaroodi G-UNIT SOLDIER Join Date: Feb 2005 Posts: 27,646 Thanks: 12,398 Thanked 689 Times in 82 Posts	Get um fif..!!

08-18-2008, 01:06 PM	#15
Fo_Shizzle FaShizzy Join Date: Dec 2006 Location: Born In Lisbon Livin In London Posts: 2,789 Thanks: 952 Thanked 229 Times in 36 Posts	damn...50 got money to burn __________________

08-18-2008, 02:15 PM	#17
KingBart Join Date: Oct 2007 Location: Cleveland Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	He do be stackin chips. But on another note doja flops hard man chill dude I luv the Unit 2 I b on here every day as a guest just lookin at what yall say man most the people here like the Unit but u b on sum other shit man 4real stop it

08-18-2008, 03:20 PM	#18
gangstabone23 Banned Join Date: May 2008 Location: Whatever Posts: 1,140 Thanks: 2 Thanked 255 Times in 72 Posts	50 is the man when it comes to money, dude is opposite to what scott storch is.

08-18-2008, 03:24 PM	#19
Yuri Orlov Yayo For Vice-President Join Date: Apr 2008 Location: Back in the machine for the fuck of it. Posts: 2,316 Thanks: 1,320 Thanked 1,137 Times in 206 Posts