Lesson #2: Use Secrecy to Seduce Your Customers

On top of refusing public interviews, Ty Inc. doest not list its telephone number on any of its promotional material, including its website. Meanwhile, the Ty Inc. headquarters resides in suburban Chicago in an unassuming concrete building that boasts no corporate logo, not even a company sign or street number to identify the premises. To the unassuming passerby, one would never know this is where the world's most successful toy company is located. The company's official mailing address is also nothing more than a humble P.O. Box.

In addition to keeping his own privacy, Warner is quick to ensure that those closest to him reveal none of his personal or corporate secrets either. He has agreements with his childhood schools not to reveal any of his personal or scholarly information. Current company employees must also promise to never disclose any information about the company or the CEO himself. Doing so would result in their being let go.

All of this secrecy is not because Warner is a recluse who values his privacy. Instead, it is an actual ploy to increase interest in his products and keep his customers guessing about not only the products but the man and the company behind them.

Still, Warner is astute enough to realize that all secrecy is not good all of the time. To that end, he embarks on a little game of give and take every now and then, giving his customers enough information to keep them wanting more. For instance, once a week, Warner himself responds to select questions from Beanie Babies fans on the ‘Ask Ty' section of his website. This gives his fans just enough to make them feel like valuable customers, but not enough to let them in on the whole operation.

Warner is also careful to ensure that while guaranteeing secrecy among his employees, he also makes them feel like a valuable part of the team. In 1997, he created a limited edition Employee Bear only for his employees. In 1998, he then gave each of his employees two Billionaire Bear Beanie Babies, a trend he would continue in later years. When the company surpassed Mattel and others to become the number one toy maker in the world in 1998, Warner also gave many employees bonuses that essentially doubled their yearly earnings.

Much the way Warner limits supplies of his products to leave his customers eagerly wanting more, so too does he use the same strategy with regards to the restriction of corporate and personal information. In limiting what people can find out about him and his operations, Warner is only adding fuel to the fire that leaves retailers and collectors guessing and grasping for what will happen next.