Club 500’s residents about social capital and how to make money on it
Among people with financial well-being, the perceived value of a quality environment is much more pronounced in comparison with the average majority.
This is evidenced by the results of numerous studies that show an obvious relationship between the quantity and quality of social contacts with the amount of income.
A recent study by Howard’s Rheingold found that the majority of those with above-average earnings have more successful people around them and average more than 10 contacts per day, while the majority of those with below-average earnings have no more than than with 5-7 people every day, and as a rule, with the same ones.
Another common formula from the famous American business coach Jim Rohn, verified by dozens of studies in different countries, illustrates the impact of the quality of the environment on the financial result: the size of your income is the arithmetic average of the 5 people with whom you spend most of your time.
Good social connections are a universal source for life that makes us more adaptable in any situation and allows us to achieve greater results in a unit of time. The larger and stronger your environment is, the faster and easier you can achieve your goals, develop and, as a result, earn more.
There is even a special term for the cumulative potential of your connections in society – “social capital.”
Now the most obvious is the impact of the environment on the financial result in the entrepreneurial environment. Businessmen as the most proactive part of society are constantly in search of the fastest ways to achieve maximum results, therefore they use connections and they are interested in building loyalty with people around them. That is why businessmen were the first to pick up this trend.
We spoke with residents of the closed Club 500 premium business club to understand how the power of the environment works and what results it allows you to achieve in life and in business.
Club 500 is a closed business club for premium entrepreneurs, it includes more than 900 residents with a total business turnover of $18 billion per year!
Any community is a concentration of expertise and experience of its participants. For example, in business clubs in the person of entrepreneurs there are hundreds of markets and niches, so the club has the opportunity to reach any competence and any opportunity.
In addition it is possible to be in the same information field with like-minded professionals who are constantly looking for new sorting out the familiar problems, try new tools and test hypotheses. So, in the community there is an opportunity to adopt someone else’s successful experience and learn from other people’s mistakes.
“Every entrepreneur has a negative experience, but what really makes it possible to make a super result? It is when small business grows to medium and medium to large, here’s this precious experience of the successful practices of our residents – it’s one of the most powerful and unique sources to get from the Club” – Dmitry Portnyagin.
To make headway quickly it is very important to receive feedback from the relevant environment. Looking from the outside allows you to see the “blind sides” and learn more about your advantages and disadvantages. Many group development tools, such as mastermind, are built on this insight. Based on this method Club 500 hosts a monthly Forum – a two-hour event where residents in dozens discuss everything that worries them and collect feedback from group members. According to the Club 500 team this is the most favorite format of residents that collects the most positive feedback and brings the most results.
This is how Club 500 resident, serial entrepreneur Igor Mgeladze said about this tool: “For me, the Forum is a space where I can discuss issues that concern me the most. In most cases this concern is related to the well-being of the business and systems. These are questions that are not always possible to discuss with your partners, because partners often struggle with their own anxieties and difficult emotional states. To come and tell them: “Guys, I have worries and doubts here” means breaking their base of power, because inside my team I am a support for people. The same applies to the family – some things I am not ready to discuss with my wife, because I do not want her to worry. Our forums are quite open and honest, that allows you to really look deeply into business processes, into the relationship of each of us to our business, to our family, to life. In addition mastermind is an opportunity to observe each other’s life experience, each other’s strategies, adopting something into your life, seeing how something works and something don’t“.
In the circle of successful people you get the opportunity to observe successful models of behavior and rely on the experience of carriers of authoritative opinions, to adopt values and attitudes. So a culture of mentoring is developed in many communities. An experienced look from the outside often allows you to make a powerful leap in business.
One of the striking cases from Club 500 Dubai resident, Sergei Aleshko (Siarhei Aleshka), founder of the Academy of Financial Advisors, who began relocating his business in July 2022, and immediately launched his product, which made $16,000 in the Russian market. Sergei was trained by Sardor Tursinov, also a resident of Club 500, who, with the help of business psychology tools in the mastermind group, helped Sergei make a transformation of his entrepreneurial mindset and made X10 results on the same product in two months – 180 thousand dollars.
Resource sharing
Any community provides another important and obvious benefit – participants can share their resources, thus multiplying each other’s capabilities. Anything your loyal members of your community have could potentially serve your purposes. Therefore, any new contact in the like-minded community has the potential for mutual benefit.
For example, TOP business clubs have thematic chats to solve a variety of issues: investments, real estate, marketing and sales, production and construction, marketplaces, etc. Any problem can be solved through a chat request. In addition to business requests, dozens of ordinary everyday problems are solved here every day, that millions of people face every day: you can find the necessary contact, draw up documents in an accelerated time, get insider information, get a recommendation, exchange money at a favorable rate, etc. According to Club 500 statistics, most requests are resolved in a couple of minutes; complex atypical requests are resolved in 20 minutes.
With such support community participants achieve their goals faster that ultimately affects the financial result per unit time.
“In a pandemic, the 500 Club hosted many successful cases built on the loyalty of the Club’s residents: the owners of the company, who were in an active stage of growth, temporarily took whole packs of employees from those companies that were unable to fulfill their salary obligations. Someone gave their vacant areas, warehouses, offices and equipment for free to their teammates. Our residents actively switched to suppliers within the Club, thereby forming the Club’s internal microeconomics, which allowed the businesses of our residents to survive” – Dmitry Portnyagin gives as an example.
Loyalty and trust
Loyalty is a powerful catalyst for achieving goals, since most problems can be solved precisely with the help of other people. Any community provides participants with loyalty and trust in each other, allowing faster and easier reduction of distances and thus opens up wide opportunities for cooperation.
Outside communities such a resource as the loyalty of others is obtained more slowly, more difficult and largely depends on individual abilities to build positive relationships with people. If you know how to build favorable relationships with people, then every person in your environment will cost much more in terms of social capital. We know many examples of such mechanics from life.
For example Mark Zuckerberg’s dorm neighbors at Harvard became co-founders of Facebook. Now these people, having made several times on the Forbes world lists, have a tens of billions of dollars thanks to a dizzying start. At the very beginning of the story of Microsoft Bill Gates hired his high school acquaintances.
In business communities loyalty and trust is one of the key sources that allows businessmen to develop maximum speed, attract partners to their projects, find investors among teammates and get support in any of their endeavors. In Club 500 on average 20% of residents become serial entrepreneurs: the trust that provides the club’s space allows them to start new projects with greater determination, buy shares in each other’s businesses, invest, etc.
Social capital is also moral support from a significant environment, creating the potential for emotional comfort, a sense of confidence and security.
This resource allows you to act on life with greater determination, resist stress and dare to do more.
“A lot of our residents use the Club as a tool to enter new markets. If you have created a quality product in your country, you can easily enter a new market by accessing quality and secure partners in any direction and industry” – shared by CEO of Club 500 Andrey Veselov.
Many experts predict that in the near future there will be a steady trend around the world to unite into communities. Communities will become a popular resource where people form their social capital to achieve goals, professional or personal.
To apply for membership in Club 500, please click here
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