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It's worth noting that The Profit picks companies that are inherently dramatic because it's a TV show. The goal of a TV show is to get you to watch. Thus, the

It's worth noting that The Profit picks companies that are inherently dramatic because it's a TV show. The goal of a TV show is to get you to watch. Thus, the more of a train wreck, the more likely you watch. If Marcus was trying to maximize his ROI on the business investments, he would start with different businesses and more reasonable owners. Instead, he is maximizing the ROI on his TV show and his Brand (ugh, I hate that word). So, by losing a small amount of money on some ridiculous businesses, he makes a whole lot more on the back end of being on TV, selling business books, giving speeches, and in general looking like a business hero. The long play here is very, very smart and has obviously paid off already.

glenra 9y ago
> If Marcus was trying to maximize his ROI on the business investments, he would start with different businesses and more reasonable owners. To get a great deal, Marcus is looking for underpriced businesses that are broken in the particular ways he can help with. Since dealing with interpersonal issues is one of his strengths this probably would select for unreasonable owners even if "being on TV" weren't part of the deal.
eitohaoeth 9y ago
100% this. Actually seeing through to the incentives and motives behind it in order to see the context for what it is.
gizzlon 9y ago
> So, by losing a small amount of money on some ridiculous businesses Check out the recap in episode 1, season 5. Some of them make quite a good profit.. and some don't. > he makes a whole lot more on the back end of being on TV, selling business books, giving speeches.. hm.. did you do the math on this? Seems like you would have to sell a lot of books to cover losses of a few million USD per year [1]. And AFAIK he's not selling any books (?). [1] https://en.wikipedia.org/wiki/The_Profit_(TV_series) https://en.wikipedia.org/wiki/The_Profit_(TV_series)
ummonk 9y ago
> If Marcus was trying to maximize his ROI on the business investments, he would start with different businesses and more reasonable owners. That doesn't seem true to me. If a company is relatively well run and still struggling, it will likely be much harder to turn around than one that is struggling simply because it is run extremely poorly...

glenra 9y ago

> If Marcus was trying to maximize his ROI on the business investments, he would start with different businesses and more reasonable owners. To get a great deal, Marcus is looking for underpriced businesses that are broken in the particular ways he can help with. Since dealing with interpersonal issues is one of his strengths this probably would select for unreasonable owners even if "being on TV" weren't part of the deal.

eitohaoeth 9y ago

100% this. Actually seeing through to the incentives and motives behind it in order to see the context for what it is.

gizzlon 9y ago

> So, by losing a small amount of money on some ridiculous businesses Check out the recap in episode 1, season 5. Some of them make quite a good profit.. and some don't. > he makes a whole lot more on the back end of being on TV, selling business books, giving speeches.. hm.. did you do the math on this? Seems like you would have to sell a lot of books to cover losses of a few million USD per year [1]. And AFAIK he's not selling any books (?). [1] https://en.wikipedia.org/wiki/The_Profit_(TV_series) https://en.wikipedia.org/wiki/The_Profit_(TV_series)

ummonk 9y ago

> If Marcus was trying to maximize his ROI on the business investments, he would start with different businesses and more reasonable owners. That doesn't seem true to me. If a company is relatively well run and still struggling, it will likely be much harder to turn around than one that is struggling simply because it is run extremely poorly...