The Ty Warner Story – Modeling The Masters

I’m proud to announce our latest famous entrepreneur profile to EvanCarmichael.com: Ty Warner from Ty Inc. best known for his line of Beanie Babies products.

He dropped out of Kalamazoo College to sell stuffed toys. It might not have been the most promising of starts, but when the young Ty Warner decided to start his own line of stuffed animals, he wound up taking children across the country – and their allowances – by storm. Beanie Babies were affordably priced, and with their cute individual names, Warner found himself sitting on top of a gold mine.

“Some companies are in it for the quick buck,” Warner once said back in 1996. “I want longevity.” In 1998, Ty Inc. surpassed Mattel Inc. and Hasbro Inc. to become the largest toy company in the U.S. How did this college drop out earn himself a spot on Forbes’ World’s Richest List?

You can read the full Ty Warner story here:

The Toy Tycoon: The Early Years of Beanie Babies Founder Ty Warner – Click To Read Article
He dropped out of Kalamazoo College to sell stuffed toys. It might not have been the most promising of starts, but when the young Ty Warner decided to start his own line of stuffed animals, he wound up taking children across the country – and their allowances – by storm. Beanie Babies were affordably priced, and with their cute individual names, Warner found himself sitting on top of a gold mine.

Taking Beanie Babies to the Bank: Warner’s Company Takes Off – Click To Read Article
Back in the U.S., Warner was now in search of the funds he needed to start his new venture. He placed a mortgage on his small suburban home and also set aside the $50,000 inheritance he had received after his father’s death in 1983. That, in addition to his life savings from his six figure income at Dakin gave Warner enough to found Ty Incorporated in 1986.

Lesson #1: Tease Your Customers into Wanting More – Click To Read Article
Warner did not spend any money on advertising for any of his product lines, not even the ever popular Beanie Babies. He did not have to. Instead, he pursued a novel and cost-effective strategy of teasing and taunting his customers into wanting more.

Lesson #2: Use Secrecy to Seduce Your Customers – Click To Read Article
Throughout Warner’s entire career, he has granted just three interviews with the media, this despite being one of the wealthiest men in the world. Does he really value his privacy that much? Or rather is it yet another weapon in Warner’s chest of arms that works to further lure in the unsuspecting customer and make his products irresistible?

Lesson #3: Listen To Your Customers, Not Your Critics – Click To Read Article
By 1992, Warner’s sales catalog had become an increasingly important marketing tool for the growing company. It now featured several dozen plush animal toys, with retailers and collectors alike in a frenzied race to order the latest releases.

Lesson #4: Low Risk Means Low Rewards – Click To Read Article
When it came to taking the road less traveled, Warner was all about accepting risk. And not just a little bit of risk; Warner knew that the more risk he was willing to take, the greater the reward in the end would be.

Lesson #5: Use Strategic Partnerships to Promote Your Products – Click To Read Article
Throughout most of his career in the toy industry, Warner had made a name for himself by bucking the trends. When tradition stated he should sell in the biggest stores he could, Warner opted to distribute his toys via the smaller “ma and pop” shops. And, when his competitors were spending millions of dollars on advertising campaigns, Warner resisted, choosing instead to cover the company and its products with a veil of secrecy.

Success Never Looked So Cute: How Beanie Babies Took the World by Storm – Click To Read Article
“Some companies are in it for the quick buck,” Warner once said back in 1996. “I want longevity.” In 1998, Ty Inc. surpassed Mattel Inc. and Hasbro Inc. to become the largest toy company in the U.S. How did this college drop out earn himself a spot on Forbes’ World’s Richest List?

Ty Warner Quotes – Click To Read Article
Ty Warner Quotes

What do you think of Ty Warner’s story? Are there any other famous entrepreneurs you would like to see profiled?

I’ve love to hear your thoughts if you leave a comment below!