by Larry Chiang 
Treasure management is something business school neglects to teach.
I am able to get results that are in the category between legendary and awesome. This is because I hacked treasure management. I read and applied, “Richest Man in Babylon”, “Millionaire Next Door”, ‘Ultimate Credit Handbok’ and of course the legendary tome, “What They Don’t Teach You at Harvard Business School”. Here is the result in four categories you may feel free to copy-paste. Yes, Copy-Paste is Chapter 3 of my NY Times best selling book, “What They Don’t Teach You at Harvard Business School”.
-1- Don’t Rev You Life Engine CONSTANTLY at the Red Line
Have you seen people that are forty that look fifty.
Those are people that keep their engines in the 7000 RPM (revolutions per minute). In life, the church teaches the 70-20-10 rule of treasure management under the concept called tithing. I wont address money’s treasure management but I will focus on time treasure management.
Just like money, time should be divvy’d up 70-20-10 with 70% your necessary work, 20% is invested time and 10% is donated. If you’re at the red line, you’re 110% core work, -5% invested, -5% donated. You know why presidents and Coach Mike D’Antoni age five years per year in office?! THEY are 130/-15/-15!
-2- My point number two is to go back and re-read point number one and tweet me @6502838008 140 characters of reaction to point number one.
I will wait.
-3- Buy Real World Insurance
Earlier, I met the Editor in Chief of this blog because I wrote a post in TechCrunch about “Taking Two Down the aisle “. It is a form of real world insurance.
Buying real world insurance is a method of hacking treasure management because it gets you net net better results at not-that much more money. Another example of real world insurance is when people plan an NCAA basketball final four weekend to Las Vegas. I always book an extra room off property.
What I mean is that you and your ten guy friends all book at Wynn or Encore. I book an emergency room at Treasure Island.
Just recently, there was the tech conference called SxSW. I bought some real world insurance that augmented my treasure because I controlled two venues and had back-up plans in case the Waterloo room failed to be available for my midnight keynote(s).
From Jim: The brilliance of this idea is that you’re actually buying insurance you could use. Paying a little extra, say on a nonrefundable deposit on a second venue, guarantees you a backup venue in the event the first one quits on you (or is double booked, whatever). It’s brilliant.
-4- The Larry Chiang Reverse Rebate Model
The best part about hacking treasure is to know when to give it away. For example, Duck9 sells a program for FICO score establishment and augmentation for $600. To test the Duck9 blog as a sourcing channel for lead generation, We are testing a negative cost .
This negative cost is an example of a “Larry Chiang Reverse Rebate Model”. Previously, I used it to sell-out Eventbrite events. In short, Stanford Engineers I teach would pay $6. If they actually showed up, they get $20. Lets examine the dynamics
- It solidifies the covenant between rsvp-ed guest and host
- It teaches a lesson. Buying twenty dollar bills for six bucks is what the internet was invented for (in my opinion 🙂
- It is hilarryAss because instead of giving away one iPad as a stanford student contest, everyone is a winner (private school, spoiled kids I know)
If you’re curious of executing the ‘Larry Chiang Reverse Rebate Model” it used to be called ‘larry chiang rebate model (LCRM)’. You can google it to augment your treasure.
Who is Larry Chiang? Larry Chiang is CEO of Duck9 . He blogs. Currently he has a column at Bloomberg BusinessWeek, CNN and Yahoo. They all have the focus: What They Don’t Teach You in School. His sequel comes out 11-11-13: What They Will Never Teach You at Stanford Business School. Oh, he also has a VC fund, “Larry Chiang Stanford Asse9 Fund of Stanford Founders”.