Success Never Looked So Cute: How Beanie Babies Took the World by Storm

Scarcity: Warner employed a carefully calculated strategy of distribution - using only smaller niche stores - and marketing - limiting supplies to stores and retiring select styles sporadically. In doing so, he was able to create a ‘now or never' mentality around his toys and "control the fad". Collectors and retailers alike became anxious to get as many styles as they could before time ran out.

Secrecy: "It was fun," Warner said after one of his rare visits to a toy store where he autographed Beanie Babies for eager children. "But I think leaving it all a mystery is better." Warner traded in his early eccentric ways for a reputation as a recluse that helped create a mystery around not only himself but also his products. By not revealing too much, he always left people wanting more.

Determination: Ignoring the critics who called his original Beanie Babies "road kill," Warner continued on his quest to create the world's best quality plush toy in the child-friendly price range of $5. He understood what they wanted - something cute, cheap and easy to carry - and gave them exactly that, ignoring all those who stood in his way.

Risk: He quit college to try his hand as an actor in Hollywood. He wore a fur coat and drove a Rolls Royce to sell children's toys. He invested his life savings into a $5-20 dollar toy business. At every point turning point in his life, Warner decided to embrace the riskier decision, to take a chance and roll the dice. He was betting high and winning even higher.

Partnerships: Despite shunning the traditional advertising methods throughout most of his career, Warner knew that when the time was right, he would be willing to embrace select strategic partnerships. That time came with McDonalds, and it came with Cyrk, two companies he teamed up with in promotional campaigns that proved wildly successful. He thought outside of his own product range to embrace the possibilities of partnership.

While the Beanie Baby craze might have cooled down in recent years, Warner continues to rank as one of the world's wealthiest people. Today, he remains at the helm of Ty Inc., manufacturing and distributing Beanie Babies, Ty Girlz and a range of other plush toys. He has also diversified with investments in hotels, property and golf courses.

Becoming a billionaire off of a product line that retails for between $5 and $20 is no easy feat. But Warner's master skills as a marketer and insight into the minds of children across the U.S. have proved a deadly combination, one that has taken him from college dropout to business legend.