Chapter 124 - The Boy’s Life of Barnum
Today’s Chapter is based on the book “The Boy’s Life of Barnum” by Harvey W. Root. It is a biography on the life of P.T. Barnum.
P.T. Barnum was a showman and businessman known for popularizing sensational entertainment such as public museums, musical concerts, and the three-ring circus. He founded the famous Barnum & Bailey Circus, dubbed "The Greatest Show on Earth," which combined exotic acts, human curiosities, and spectacular attractions like the elephant Jumbo. Barnum was also a skilled promoter and innovator in entertainment marketing, leaving a lasting legacy as a pioneer of modern show business.
Here’s What I Learned:
Master of Marketing
“Marketing is no longer about the stuff that you make, but about the stories you tell.”
— Seth Godin
P.T. Barnum’s success as a showman is a testament to the power of ingenious advertising and publicity, a skill that propelled Barnum from a modest upbringing to becoming one of the most renowned showmen in history. Barnum understood early on that attracting attention was the key to success, and he employed innovative strategies to captivate audiences long before modern marketing existed. His ability to turn the ordinary into the extraordinary through bold and unconventional methods laid the foundation for his empire, from circuses to museums, and remains a lesson in how to stand out in a crowded world.
One example of Barnum’s flair for publicity can be seen during his management of the American Museum. Root mentioned that “When he took possession, all there was on the outside of the building to inform the public of the nature of the enterprise inside were the two words, ‘American Museum.’ Everything about the place was quiet. Nothing to attract attention. He covered the building with great posters announcing his special attractions. He placed a band on the balcony outside to play most of the day, and at night he had huge lights which lighted Broadway for many blocks as it had never been lighted before. He was constantly studying out some new thing to surprise and astonish the public.”
The perfect example of the length that Barnum took to pique the public curiosity can be seen with his most infamous “brickman” episode. He once asked a man to mysteriously lay and rearrange bricks outside of the American Museum. The sheer absurdity of the act drew crowds, and Barnum’s instructions to the brickman ensured the spectacle snowballed into free advertising.
“In a few moments a number had noticed his [”brickman”] peculiar actions and stopped to watch. Some asked him questions, but he marched on as though he did not hear them. More people stopped to see what was attracting attention. Not more than thirty minutes passed before five hundred at least were watching and commenting on the strange man's actions. When St. Paul's clock had measured off an hour and the street was so packed that it was difficult to get through, the fellow, still following instructions, took a ticket from his pocket, presented it at the door of the Museum, and went in. In fifteen minutes he came back and began his solemn and mysterious rounds, going back into the Museum at the end of another hour, and so on until sunset, and each time he disappeared inside from a dozen to a score of people bought tickets and followed him. For several days the "brickman” went his rounds; then the police interfered, telling Barnum that the crowds were blocking traffic so much that he must stop his man with the bricks, which of course he did. But it had been an excellent thing for Barnum. Not only had numbers followed the man into the Museum, but many hundreds had seen his strange actions and would tell their friends of them. They in turn would tell still other friends. In short, it set people to talking about Barnum and his Museum, and this meant much to him.”
— Harvey W. Root
Furthermore, P.T. Barnum’s approach to ingenious marketing extended to leveraging controversy. In his eye, controversies create debate and discussion which ensured that his attractions remained in the public eye, a strategy that amplified his success and set a precedent for using publicity as a tool to build interest.
As Harvey W. Root explained, “That was the difference between Barnum and other showmen, and the secret of it was in his wonderful ability to attract attention and set people to talking. Bartram and Lindsay had advertised their exhibition; Barnum did the same, but in addition he did many other things to get the papers and people to talking, thinking, and even disputing about Joice Heth, and this is what filled his showroom.”
Barnum took this so seriously that he began publishing his own newspaper, the “Herard of Freedom” in order to control his own media. He used the platform to air his opinions, to create controversies and to attract attention.
"It made little difference to him [P.T. Barnum] whether they praised or blamed it. Talking made it known, and they went to see it."
— Harvey W. Root
P.T. Barnum’s approach to advertising is quite interesting because it differs greatly from what we have previously learned about marketing from David Ogilvy, often named the father of modern advertising. Ogilvy believed that it was required to have superior knowledge on the product in order to succeed in advertising. As he once said, “You don’t stand a tinker’s chance of producing successful advertising unless you start by doing your homework.” In terms of advertising, Ogilvy recommends a few steps one should take in order to succeed:
Learn everything about the product that is to be advertised. It is only by knowing all about it that one can find a great idea on how to sell it.
Find out how similar products are being advertised and how successful their advertising are.
Identify who the customers are and find out what they think about the product you are advertising (i.e: what attributes are important to them and what promise would be most likely to make them buy your brand again)
And finally, consider how you want to “position” your product. Ogilvy defines positioning as asking yourself “what the product does, and who is it for?”
Furthermore, unlike P.T. Barnum, it would be insensible for Ogilvy to create controversies around your product and company in order to have people talking about it. As a matter of fact, Ogilvy believed that “every advertisement is part of the long-term in the personality of the brand.” He mentions that the company “who dedicates his advertising to building the most favourable image, the most sharply defined personality, is the one who will get the largest share of the market at the highest profit—in the long run.” For this reason, it is primordial to decide what “image” you want for the brand and to maintain it.
Ogilvy provides the example of brand image in whiskey. He mentions that brand image is 90 percent of what the distiller has to sell. He explains that the reason why some people prefer Jack Daniel’s while others prefer Grand Dad or Taylor is purely because the three brands have different images that appeal to different people.
“Give people a taste of Old Crow, and tell them it’s Old Crow. Then give them another taste of Old Crow, but tell them it’s Jack Daniel’s. Ask them which they prefer. They’ll think the two drinks are quite different. They are tasting images.”
— David Ogilvy
Chapter 68 - Ogilvy on Advertising
Today’s Chapter is based on the book “Ogilvy on Advertising” by David Ogilvy, also known as the Father of Advertising.
Resilience
"This is no time for ease and comfort. It is time to dare and endure.”
— Winston Churchill
Resilience was a cornerstone of P.T. Barnum’s success, enabling him to overcome personal professional setbacks with determination. He was born into modest circumstances with limited formal education and he faced financial hardships. Yet, Barnum turned these adversities into fuel for his ambitions. His ability to rise above difficulties offers a powerful lesson in perseverance and resourcefulness.
As a matter of fact, Barnum encountered financial difficulty following his father’s death. As Harvey Root mentioned, “At fifteen, he found himself face to face with the world, dependent on his own efforts, and in debt for the shoes in which he went to his father’s funeral.” Stripped of his savings and burdened with debt, he nonetheless forged ahead, using his wits to build a career, demonstrating that adversity can be a catalyst for growth when met with resolve.
And, from a young age, Barnum understood that if he wanted breakout of this financial struggle, being a mere salaryman would not be sufficient, he would need to go into business.
“Young Barnum's position in the Brooklyn grocery store was unusually good considering his age and experience, but nevertheless he was uneasy. He was not satisfied with a mere salary. He was anxious to be engaged in some enterprise of his own where there was a chance of securing large returns in a short time and where he could put into operation the unique ideas and striking methods of advertising which finally made him famous and wealthy, so as soon as he got back to Brooklyn he gave his employer notice and not long after left him.”
— Harvey W. Root
Therefore, throughout his life, Barnum started various entreprises, from lottery business to selling books. In fact, Root mentioned that “It was a characteristic of Barnum all through his life to set matters in motion and then leave their operation to others. This was the method he used with his store and ticket business, a method which soon made it possible for him to have most of the profits, but with time to give his own energies to developing new schemes and enterprises.”
However, not all of Barnum’s businesses would end up well, hence once again, a demonstration of his resilience. Barnum first started dealing books by buying large numbers from publishers, dealers and at auctions in New York and took them to Connecticut to sell them from town to town at auctions. Unfortunately, he had to quit when some of his best books were stolen.
Despite this business failure, Barnum earned great value from selling books. As Root wrote, “Nevertheless, this book business, though it did not fit his tastes and inclinations nor earn him money enough to make him wish to continue it, no doubt had a far greater value for him all through his life, for I think we may believe that he read many of the books himself and in this way gathered much of the general knowledge which he could never have acquired in the short time he went to school.” As such, P.T. Barnum’s story illustrates the importance of resilience and the ability to find the silver lining in every obstacle life throws our way.
This reminds me of what we have learned previously from Seymour Schulich. As a matter of fact, one of the key lessons is the importance of patience and resilience in order to achieve wealth. As a matter of fact, he believes that entrepreneurship is one of the most effective ways to build wealth and achieve financial independence. However, since it is quite challenging, people often prefer quick satisfaction by working as an employee. This is a mistake. Schulich mentions, "I don't think a person can ever get really rich working for someone else."
Even high-paying professionals will have an issue in becoming wealthy according to Schulich. He explains that “Doctors and lawyers get paid by the visit or hour. Therefore, their pay is limited to the number of hours in a day. You can make a very good living at these professions. However, you will never get truly rich being paid by the hour with a 50 per cent marginal tax rate.”
As such, Schulich encourages us to become entrepreneurs. However, Schulich warns that it is important to be resilient and patient in order to succeed in business. He states that “It usually takes five to ten years to build a successful business, even in industries like oil or mining, where quick strikes can happen.” This perspective is crucial for aspiring entrepreneurs who may expect immediate results. Schulich’s wisdom reminds us that great businesses are not built overnight; they require time, effort, and resilience to flourish.
“He that has no patience has nothing at all.”
— italian proverb
Constant Innovation
“Innovate or die, and there's no innovation if you operate out of fear of the new or untested.”
— Robert Iger
Finally, one of the most critical lessons we can learn from P.T. Barnum is the importance of embracing change and continuously improving one’s businesses and offerings. Throughout his career, Barnum was always looking for ways to evolve and enhance his various enterprises.
When he first entered the circus business, Barnum was determined to make it bigger and better than ever before. He and his partners introduced various innovations such as multiple performance rings, expanded advertising and promotion, and new modes of transportation that allowed the circus to reach larger audiences.
As a matter of fact, Barnum’s empire was built on the extraordinary. He recognized that people crave wonder, and he delivered it through curiosities that blurred the line between reality and spectacle. In that aspect, as we have previously mentioned, Barnum was talented in marketing and he was great at creating curiosities out of nothing through his desire to be constantly innovating.
"At a time of life when most men are content to cease their efforts, drift with the tide, and reflect on the past, he was looking forward to new enterprises and greater successes with the keen interest and anticipation of a young man."
— Harvey W. Root
One perfect example of this is how he was able to transform Charley Stratton into General Tom Thumb. Root mentioned that “Barnum must have read of the ancient Tom Thumb, and so he appropriated the name, for with his keen judgment of human nature he knew well that however remarkable his dwarf, as Charley Stratton it would always remain commonplace, but as General Tom Thumb it had the advantage of an impression of distinction to begin with.”
Furthermore, Barnum started advertising and challenging others to produce a smaller human being than General Tom Thumb, but no one was able to. In fact, Root writes that “One fellow who had been quite an attraction as a dwarf came to see the General, and went away saying that he could not call himself a dwarf any more, but would have to advertise as a giant. The General's reputation spread rapidly. Those who came to see him went away and told others, and they came, in turn telling others who came also. Well-to-do and fashionable people became interested in the tiny man from Bridgeport, and some days there were long lines of carriages waiting on Broadway while their owners were being entertained by the General.”
"Barnum met this sort of thing with advertisements. He covered the country with large bills which read: 'Wait for Barnum. Don't spend your money on inferior shows.' He also printed much about the small shows in his programs and offered great sums of money to anyone who could equal some of his curiosities."
— Harvey W. Root
Being in the show business, it is clearly understandable that Barnum had to be consistently providing new curiosities in order to continue attracting the public to come to his circuses. His story should reminds us that in business, only the paranoid survives, similarly to what we have learned previously from Andy Grove.
As the former CEO of Intel, Grove was known for his unrelenting focus on staying ahead of the competition and anticipating the next big shift in the technology landscape. At the heart of Grove's philosophy is the idea that healthy paranoia is an essential quality for business success. As he once said, "I believe in the value of paranoia. Business success contains the seeds of its own destruction." This notion may sound extreme, but Grove's logic is hard to refute. In fast-moving, hyper competitive markets, complacency is the main reason for the downfall for even the largest companies.
This risk comes from the fact that when companies are doing well, the leadership teams can become complacent as they fail to recognize the warning signs that the industry is slowly changing beneath their feet. Grove saw this dynamic play out time and again, as once-dominant players in the tech sector found their fortunes suddenly in free fall.
Grove illustrates this point by recounting the experiences of his own company, Intel, as it navigated a strategic inflection point in the computer industry, where there are often changes to the rules of the game. He observes that "sometimes these rules change—often in very significant ways. Yet there is no flashing sign that heralds these rule changes. They creep up on you as they crept up on us, without warning."
His solution was to encourage a guardian attitude among his management team, where vigilance against potential threats was the default mindset.
"I believe that the prime responsibility of a manager is to guard constantly against other people's attacks and to inculcate this guardian attitude in the people under his or her management."
— Andy Grove
Beyond the Book
Read "Turning Adversity Into Advantage" by Farnam Street
Read "Andy Grove and the Value of Facing Reality" by Farnam Street
Listen to "Andy Grove: Only The Paranoid Survive (Outliers)" by The Knowledge Project
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