Ok, maybe Buffett is being a little too modest, but he makes a good point. Talent cannot succeed without resources, so if we don’t have the talent, we can make a really good living by investing in those who can do the most with the cash.

In fact, not being “talented” is one of the things that allows Warren Buffett to be so successful. By acknowledging his lack of expertise, Buffett gives more freedom and autonomy than most investors. He doesn’t try to micromanage his employees; instead, he simply lays out expectations, provides the right incentives, and steps in whenever they need a helping hand. This allows him to invest in far more companies than he otherwise would.

In short, he’s using his time efficiently while making his employees happy. Win-win.

Everyone knows Warren Buffett is a great investor, but there are many others who are a little more under the radar. In 1998, two young men approached a man named Andy Bechtolsheim with a revolutionary internet idea. They were running low on cash, but had a tremendous amount of energy and passion.

Bechtolsheim was a fairly wealthy man who respected technology, and he knew a good idea when he saw one. He immediately wrote them a check for $100,000 to go build their company.

Six years later, Bechtolsheim’s $100,000 investment in Google was worth nearly $1 billion.

Bechtolsheim is a very smart man, but he certainly didn’t have the ability to build Google himself.  But he still made a ton of money because he recognized that the founders had this ability, and managed to get a piece of the early action.

Another great example is rapper Curtis Jackson, better known as 50 Cent. Jackson rapidly rose to stardom in the 2000s, but was looking for ways to diversify his income. Through mutual connections, he met with a man named J. Darius Bikoff, who was running a small, but growing healthy beverage company.

Jackson knew little about the healthy beverage industry, but he understood that the market was growing rapidly. He also recognized that Bikoff was an unusually savvy businessman who would do anything to make his company a globally recognized brand. Jackson jumped on the opportunity to invest, and helped endorse the company as part of the deal.

In 2007, Coca-Cola bought Vitamin Water for more than $4 billion. Jackson’s cut? More than $100 million.

Clearly, savvy investing is the best way to grow your wealth over the long-term. The problem is that there are so many investment opportunities to choose from. Here are the three things every investor should consider before signing a check:

People

You won’t get a good return without good people. It’s that simple. Look for people who understand the business and the target market, and are willing to adapt to new situations. Also look for teams that complement each other well. Do reference checks whenever possible to make sure that people aren’t just pulling the wool over your eyes.

Products

What are they trying to sell, and what makes it different? Why would people buy this? In order to sell, a product must solve a “pain point.” In business, the consumer is always right. Be very concerned about people who invent products without a target customer in mind; chances are that it doesn’t solve a fundamental problem.

Market

How big is the opportunity? What is your upside? There is a good amount of risk with any investment, and to be honest, most investments lose money. That’s why it’s important to understand the upside potential of any business opportunity. If you don’t stand to make a significant return, you have to consider whether it’s worth your time and effort.

Have you ever made an investment? What went right or wrong? Please share in the comments.

Five years ago, a small social network called Facebook started to gain a lot of traction. Around the same time, MySpace was sold to News Corporation for nearly $600 million.

All of a sudden, lots of entrepreneurs and investors were pouring their time and money into social networking. After all, it was the next big thing, so how could anything go wrong.

The problem was that many of these people didn’t know anything about social networking, or even about the internet in general. They saw a success and wanted to copy it, but had no real vision about how to differentiate themselves.

The same thing happened with Groupon three years ago. The “daily deal” concept was easy to understand, but difficult to execute without a strong understanding of the local advertising market. However, lots of people saw an “opportunity” to get rich quick by starting their own daily deal sites.

Once again, most of them failed horribly, resulting in a huge waste of time and money.

Instead of jumping on the bandwagon, think about how you can solve a real problem that you actually understand. Even though this problem might not be “sexy,” it will definitely give you the best chance of success.

One good example of this is Cash For Gold, a business that buys gold jewelry for a serious discount and then sells the gold to other investors. The business made more than $100 million in revenue in 2010, with fairly gigantic profit margins.

Cash For Gold isn’t the “sexiest” business, and the company also engages in questionable business practices, but no one can argue with the fact that they are printing money.

Things Fall Apart:

Nothing is more painful than working for months on a partnership deal or prospective sale, only to see it fall apart at the very last minute.

I spent the early days of my career at a bank, pitching deals to rich clients. I can’t even count the number of hours I’ve spent writing documents and models that have gone nowhere.

The worst part is that sometimes there’s nothing you can do. It just wasn’t meant to be. But more often than not, you can at least increase the chance that the deal will go through.

First of all, be willing to compromise. Sometimes, tweaking the deal terms just a little bit can help alleviate a tense situation. Most of the time, making these small concessions is far better than losing the deal altogether.

It’s also important to show that you really want the business. Emphasize that you value the relationship and make sure to bring up the positives of moving forward. One of my good friends sealed a multi-million dollar affiliate contract simply by sending over a package of beef jerky.

Finally, be patient. Good things take time. Lasting relationships are not built overnight. Strong partnerships are the result of many hours of discussion, deliberation, and research. Don’t apply more pressure than you have to, or you risk things breaking down.

This last point is especially difficult for me, since I am a very impatient person, and it’s an area where I still need to show a lot of improvement. Any suggestions here are more than welcome.

You Can’t Do It All:

It’s important to know your limits. No matter how much you know or how talented you are, you simply can’t do it all yourself.

Tim Ferriss writes about this in depth in the Four Hour Workweek. After his first business, BrainQuicken, started to take off, Tim was working 15 hour days trying to ship orders, return calls, and build new partnerships. His dream of owning a profitable, growing business was quickly turning into a nightmare.

To his credit, Tim quickly identified the problem and came up with a solution. He realized that his strength was marketing and business development. Therefore, he hired people and set up automated systems to manage the back-end operations of his business.

The result? Increased profitability, improved inefficiency, and a whole lot less stress.

I owe a lot of my own business success to other people.

People have a natural sense of “fairness” – if I receive something from someone, I should repay them in some capacity. This makes it harder for people to say “no” to a request after they have already received something of value.

For example, the American Disabled Veterans organization sends out mailers asking for donations. They conducted a test: one group of mailers were sent with a simple form letter, while others included a form letter along with a small gift – such as personalized address labels. The result? A 100% increase in donations.

Commitment

People don’t like to break commitments. This is not just true with legal contracts or large, binding commitments; the motivational force is strong for all levels.

For example, a restaurant owner in Chicago was concerned because many people made reservations but didn’t actually show up, so he made a simple change. He instructed his receptionists to stop saying, "Please call if you change your plans" and to start saying, Will you call us if you change your plans?" The no-show rate dropped more than 60% within two months.

Consistency

This is simply another word for “brand.” Companies like Starbucks make large margins because they have built “authority” as a

Authority.

Authority is valuable because it conveys the perception of expertise. If you have achieved certain things, or have certain skills/abilities that others don’t have, you can charge a substantial premium for your time.

One expert at building authority is Ramit Sethi, author of the best selling I Will Teach You To Be Rich. He leveraged his Stanford education, entrepreneurial background, and NYC selling author status to launch the Earn1k course. Although this course is expensive, he has no problem getting a lot of costumers because his expertise is perceived to be very valuable.

Social Proof.

Most people are followers. If they see a trend, they are much more likely to jump onboard.

This is why good testimonials are so important. If people have seen that other customers are endorsing what they’ve bought, they are more likely to buy themselves.

Scarcity.

Have you ever seen the “only 2 more hours to buy!” icons online? This is the power of the scarcity tactic – people are more likely to take action when they perceive that an opportunity might go away.

This is the power of the Daily Deal business model. Companies like GroupOn make billions of dollars by creating a short-term opportunity, which dramatically increases sales.

Liking/Friendship.

This is an obvious one – people are more likely to say yes when they already like somebody.

However, it manifests itself in non-obvious ways. For example, my good friend Brian Crane runs a website called LuckyGunner, which is targeted at the hunter equipment niche. The site features an attractive blond named Heidi who is the “face and voice” of the LuckyGunner brand. The men visiting the site love Heidi, and thus they are much more likely to buy.

One the main themes in Ramit Sethi’s popular blog “I Will Teach You To Be Rich” is the idea that you should focus on the big wins. In personal finance, that means that you’ll save the most money by cutting back on a few big expenses rather than trying to penny-pinch every step of the way.

For example, Ramit talks about how some of his readers saved hundreds of dollars each year just by switching to a low-cost brokerage account and finding the best credit cards. Check your credit card statement for monthly charges – chances are you’ll find some subscriptions (a gym membership or a credit report service) that you never use. Cut those costs first! These are “high-return” situations  – they take very little time, save you lots of money, and best of all don’t require any change in your lifestyle.

Another great option is the daily deal sites. There’s nothing wrong with going out to eat or treating yourself to a weekend getaway. But why pay full price if you don’t have to?

It’s just another application of the 80-20 rule: 80% of your gains come from 20% of the effort. The trick is to identify that 20% quickly and maximize those particular opportunities – both in personal finance and in life.

Interestingly enough, many people who claim to be frugal are in fact “penny-wise and pound-foolish.” They’ll try to save $2 on coupons, but will pay massive annual fees on credit cards and subscriptions that they never use. Don’t become one of these people! Figure out how much you can save upfront with just a few big wins. You’ll be surprised at how big a difference it can make.

Don’t Overcommit Without Knowing What You’re Getting

A couple of years ago, I was looking to hire an SEO (search engine optimization) company for one of my web projects. I interviewed a bunch of candidates and finally narrowed in on one company. Everything seemed to check out: great references, terrific work history…and the guy I talked to was really friendly.

Eventually, we started talking about price. He gave me two options – a monthly fee, or a larger upfront fee that would guarantee me services for one year. I did the math and realized that I’d be saving a bunch of money by paying upfront, but I was still a little concerned.

When the guy saw that I was interested in paying upfront, he went in for the kill. “Listen sir, I promise that you will get outstanding quality service here. We know that our fees are expensive, but the one year option will definitely make things more affordable.”

I was sold.

Fast forward a few months. The SEO company was a total disaster. They weren’t delivering the results that I had wanted and they were incredibly unresponsive. I was getting angrier and angrier, and demanded my money back. Of course, they refused. After all, there wasn’t a whole lot I could do about it.

It was my own fault. I had overcommitted. I had gotten carried away in the moment, and wrote a large check without knowing all the facts. Had I gone with the monthly plan, I could have cancelled at anytime. This would have motivated them to keep working hard. But by giving them the money upfront, I ended up getting sucked into a major black hole.

This actually brings me the final point: if you’re going to hire people….

Hire On A Contract Basis

Anyone who’s ever had to make a hiring decision knows how hard it is to make the right choice. In a tough economy, every job listing gets hundreds of responses. It’s fairly easy to whittle the list down to a few qualified candidates, but how do you make the right decision? After all, some people might be great during an interview but won’t be the best performers on the job.

The new contract economy provides an effective solution. As the job market gets more competitive, qualified applicants are more willing to accept paid contract work that could potentially lead to full-time employment in the future. By hiring someone as a contractor first, you can quickly and cheaply find out if they fit the needs of your organization.

The contract economy is a boon for cash-strapped startups. Around Silicon Valley, many startups hire new employees on a three-month contract to see what they are capable of accomplishing. After the three month period, the startup and contractor can decide to extend the contract or part ways.

For example, ODesk, a leading internet network of contract employees, actually uses its own technology to hire contractors for technical copywriting, customer support, and server maintenance. This allows ODesk to identify the best people quickly while keeping costs low.

But contract employment isn’t just a win for the employer. By having a chance to evaluate the company while getting paid, the contractor can also see if the job is a good fit. The short-term nature of the contract also allows employees to keep their options open and look for opportunities elsewhere if they realize the job isn’t a good fit.

My own story – A few years back, I accepted a contract role with a startup in the Bay Area. It was a short-term deal with the possibility for full-time employment if things went well. Although I really enjoyed working with the management team, I just wasn’t that passionate about the product. A few months later, one of the senior executives asked me if I would like to join full-time. I said no – I’d thought about it a lot and decided that this just wasn’t the best opportunity for me. We parted ways on good terms.

This was a good decision for both parties – the company hired another contractor (who ended up being a better fit), and I moved onto projects about which I was far more passionate. I had also made some money and some great connections, while providing much-needed business development skills to the company. Overall, a win-win that wouldn’t have been achieved through a full-time hire.

What are some ways that you’ve achieved savings without changing your lifestyle?

The businessman turned to me with a surprised look. “I’ve been with my wife for forty years, and I’ve worked at my company for the same amount of time. I know just about everything there is to know about what’s important in my life. I don’t really think stepping out of my comfort zone will teach me anything new that actually matters.”

I disagree. The world around you is always changing. People change. Businesses change. What helps people make more money and lead better lives is their ability to discover and adapt to these changes. To do this, you need to step outside your comfort zone.

It isn’t easy – after all, we’re creatures of habit. We don’t like change. With that in mind, let’s start small. Here are eight baby steps to help you move out your comfort zone.

1. Reconnect with an old friend: It’s hard to meet good people, so try to stay in touch with those you already know. Once a month, pull out your Rolodex and find someone interesting that you haven’t touched base with in awhile. Call them and ask them out to lunch. If they aren’t available, try someone else. Meeting long-lost people is a great way to have new conversations – and who knows, you might even rekindle an amazing friendship or a business connection.
2. Join a Group: A few years ago, I bumped into an old friend who was part of a basketball league. It didn’t seem like my kind of thing but I decided to give it a shot. I ended up a making a bunch of new friends and getting a great new exercise routine. Ask your friends what they were currently involved in. If that doesn’t work, take a look online (www.meetup.com is a great resource) and find some groups that interest you. You’ll be glad you did.
3. Contact Someone Random: I’m not saying to just start spamming or telemarketing random people, but perhaps there’s someone you admire to whom you’d like to reach out. One of my friends, an aspiring economist, wrote a letter to Nobel Prize Winner Milton Friedman and actually got a personal response. Don’t be afraid to reach out; after all, what do you have to lose?
4. Try working with different people: At work, that might mean getting involved in a project with a new group. This is a great way to improve your interpersonal skills while getting to know new people. Note: don’t rush into doing this if it will hurt your long-term career prospects.
5. Take a walk: I personally love walking. It allows me to exercise, reflect on life, and get in touch with nature. The next time you feel like plopping on the couch and watching TV, try taking a walk instead. Let the fresh air clear your head, give you some new perspectives, and hey, maybe even some great business ideas!
6. Ask how others are doing: The best conversations come up when you try to learn about other people. It gives them a chance to talk about their lives and gives you a chance to learn. It strengthens relationships and makes you more empathetic. Best of all, it doesn’t cost you anything but a little bit of time. In short, it’s a great way to build your personal brand at almost no cost. This is one thing I don’t do often enough and am actively working to fix.
7. Spend more time around kids: A few months ago, I was telling my little cousins about a social gaming business idea. The business model was targeted at young children and I wanted to get their feedback. I was really excited about the concept, but five minutes in my cousin interrupted me. “That’s stupid,” he exclaimed. My immediate reaction was frustration. How was telling me that my idea was stupid constructive in any way. Kids say the darndest things! But then I realized that many of my friends and colleagues may have actually felt the same way, but they just didn’t say it with the same bluntness. The great part is that this bluntness often help us realize basic truths about the world and about ourselves.
8. Volunteer: It amazes me how much better we feel when we do something selfless. Volunteering gives us purpose and direction in life, and often helps us better understand ourselves and what is truly important to us. Not a bad return on investment…especially when the goal was to help others!

How do you plan to step outside your comfort zone? Please share in the comments

“I don’t feel like going running today…I’m too tired.”

“I can’t believe that Jessie made so much money on his last company. I am way smarter.”

“She’s so annoying…I can’t believe she said that to me. If I had my way, I’d give her a piece of my mind.”

We all make excuses. It’s a natural way to let out our frustration once in a while. The problem is when it becomes a habit.

Excuses are a high-effort, low-reward activity. Whining doesn’t actually solve anything; it just distracts up from the real issues. Instead of spending the time complaining about something, why not spend time fixing it? Great businesses weren’t built by pointing fingers and talking behind someone’s back has never improved a relationship.

Here’s a personal story: Several years ago I stumbled upon Quick Sprout, a blog by entrepreneur Neil Patel. When I first read Neil’s bio, I was very impressed. Here’s a guy who’s my age and he’s already accomplished so much; he’s a multimillionaire, an in-demand speaker, and consults for a number of high-profile clients. The first thing that I thought was, wow, this guy is really inspiring.

The next thought was not as pleasant. All of a sudden, my own accomplishments didn’t seem as meaningful. I’ve achieved nothing compared to Neil.

But wait. Neil’s situation was different. He got lucky, stumbling upon a great business model while he was still in college. If that had happened to me, I’d be rich too. But I can’t copy him now; the market’s changed and it’s too late. So it’s totally fine if I haven’t yet achieved the things I want to…

Suddenly I stopped myself. How could I be thinking like this?

This type of unproductive thinking is called the “Shrug Effect.”  Instead of figuring out how to incorporate success into our own lives, we waste time figuring out the “differences” that allow others to be successful instead of us. This allows us to “shrug” our concerns away.

We often look at successful people with a sense of awe. How did they get to where they are? It must be some innate quality that we just don’t have. Or maybe it’s that Harvard Business School diploma that got them the connections they need.

In reality, most successful people have failed more often than they’ve succeeded. But when we hear about them in the media, we usually only see the successes – the fancy degrees, millions of dollars, whatever it might be. That’s one of the things I love about Neil’s blog; he’s completely upfront about his failures and uses them as an opportunity to learn. To me, this is something we can all learn from to make us more successful.

As I thought about it more, I realized two things. First of all, Neil’s not that different from me. We both grew up in middle-class Indian families in California. We both have a college degree and an entrepreneurial background. I’ve had the exact same opportunities for success, and thinking otherwise isn’t going to move me in the right direction.

The second thing I realized is that it’s never too late. We always have a chance to accomplish things if we put in the time and effort. The last thing we want is to be saying that we should have tried to do something we really wanted to do. Excuses might make us feel better in the short run, but eventually we’ll end up regretting it.

With that in mind, here are four techniques (courtesy of Zen Habits) that can help transform your frustration into focus.

1. Define Your Goals: Take a few minutes to understand what you want to accomplish. Make a list of important tasks that you can realistically get done in the short term. Once you’ve made your list, stick to it. If you find yourself getting distracted, refocus by taking a look at your list.
2. Define Your Motivation: The best way to get motivated is to ask yourself a few questions. Why are you doing something? What is the end goal? Why is it important? Defining your motivation will help you understand why you are doing something, which is a major step in overcoming resistance.
3. Get Started: I wrote a while ago that the hardest part of anything is getting started. Once you get moving, it’s a lot easier to keep going. If you don’t start, you’ll never be in a position to finish. So why are you still reading this? Go and get started! =). Cut down on the “If’s and buts” in your vocabulary. It’s easy to say “I’d do it but…” or “I’d try it if…” but this thinking gets us nowhere. If you really want to accomplish something, the “ifs” and “buts” are just going to get in the way.
4. Make a List: Identify specific things you can do to change the situation. Think about which of these ways makes the most sense and give it a try. If it’s working, keep it up. If not, don’t be afraid to try something else.

If you constantly approach your problems this way, you shouldn’t have any time left for whining, and you’ll be amazed at how much more you accomplish.

So what are you waiting for? Stop complaining and start doing!

I recently got this e-mail from a good friend:

“Hi Vik. I need a bit of advice. I have this co-worker who is a total jerk. He keeps bad-mouthing me and generally gets in the way of my productivity. I’ve made some efforts to fix the situation; after all we’re supposed to be helping each other, but nothing works. What should I do?”

I like to think that most people are nice and generally mean well. But every once in a while, you get someone in your life who is a real jerk, someone that you just can’t deal with. This could be a boss, a co-worker, or an acquaintance. Most people reason that this is part of life – they just have to put up with certain people.

My approach is different: Lose the Jerks

Seriously. Jerks get in the way. They drain your energy and make you less productive. The more you invest in making failed relationships work, the more time you’ll waste….and the less money you’ll make.

I’m not saying to cut people out of your life just because you have a bad first impression. Everyone is different – some people might take time to open up or act friendly. But always be looking for patterns; if things are getting out of hand, make an effort to fix the problem. If that doesn’t work, then try to figure out ways to reduce your interaction with that person.

What if my boss is a jerk? What do I do then?

Ok, I know that you can’t just “lose” your boss. But if you’ve already made a strong effort to improve the situation, you need to look for alternatives. Don’t be afraid to explore transfers or other work opportunities if you have to. These little experiments may end up paying off big time.

A few years back, one of my friends was working as a computer scientist for a major corporation. Her immediate boss was really tough to deal with and consistently decreased the productivity of everyone in her group. As a result, she was unable to grow. Many companies were hiring in her field, but the problem was she had gotten comfortable and didn’t really want to deal with the issue.

She ended up spending three long years stagnating at the company before finally leaving for another opportunity. With a little effort, she could’ve lost the jerk and moved on…but for whatever reason, she held back. Today she says it’s one of her bigger regrets.

A word of caution: Going out of your way to “lose the jerks” is a last resort – only use it everything else has failed and you still can’t deal with the problem. Don’t rush into an emotional decision; take time to figure out if “losing the jerk” really is the best choice. And if it is, go for it. Don’t let emotions stand in the way. You should never be afraid to do what is best for you.

How do you deal with the jerks in your life? Please share in the comments

The next day he was extremely sore, but he insisted on “pushing through the pain.” He went in for another two hours…and ended up pulling his hamstring muscle. He was sidelined for a few weeks, and he never really gave the gym another try.

It was really too bad. He genuinely wanted to get in shape, but the immediate setback really dampened his enthusiasm.

A better approach is to take baby steps: crawl before you walk, and walk before you run. If you haven’t been to the gym in awhile, don’t try to push yourself too hard on the first day. Ease yourself into a routine; do a little bit each day. Over time, your body will get more used to the workout and you’ll be able to step things up a notch. This way, you’ll minimize the chance of injury and maximize your chances of success.

Of course, getting into a good workout rhythm is different from expanding your network and personal brand. These goals are even 

more long-term, and it’s important to constantly be taking little steps in the right direction.

Spend time with a different group of people: Once a month, try to make some new friends. Find people who are outside of your immediate social circle and call them up for lunch. The best part about this is you may even make some amazing relationships or business connections.

Try a different job function: Most people are very good (and are comfortable doing) one or two job functions. See if you can get an opportunity to try something new. For example, if you are an engineer, you might ask to go on a sales call to help explain the more technical aspects of your product. You’ll build confidence and you’ll develop some new skills along the way. As a bonus, your boss will probably like the extra initiative.

When in doubt, just ask yourself “what’s the worst that could happen?” You’ll be amazed at how a little perspective will help you feel more comfortable.

Stop procrastinating: There are two reasons we procrastinate – laziness and fear. Remember that if you are scared of something, putting it off isn’t going to solve the problem. In fact, the stress will only build up over time.

Instead, just do it! Tackle the tough stuff first and get it out of the way. This will relieve your mind of the stress of waiting for something bad to happen.

Over time, you’ll feel more and more confident, and can start taking larger steps. This positive loop will eventually produce big results.

Just remember, any step, no matter how small, is better than doing nothing at all.

Fast forward five years. We’re set in our ways. Somewhere along the journey, we stopped learning and growing.

How do you fight this complacency? Here’s one trick I use: every so often, take a moment to think about your “True Net Worth.”

Your True Net Worth is what you have left when you strip everything else away – all of your relationships, all of your money and assets. You’re back to ground zero. It’s hard to imagine, but when you take away all the fancy trappings, this is who you are as a person – personality, skills, and enthusiasm.

So how do we boost our True Net Worth? Here are a few ideas:

Become More Aware:

Even though the economy is sluggish, I truly believe that there are more opportunities available than ever before. The question is where to find them, and the only way to do this is by keeping your eyes open.

A couple of years back, one of my good friends got a call from his friends back home in Tennessee. They ran a rifle and ammunition business and were actively looking to expand. My friend saw an opportunity, and leveraged his skills in online marketing to generate more than $3 million in revenues in his first year. This never would have happened if he hadn’t put two and two together.

Develop New Skills:

This is a no-brainer, and there’s no shortage of new skills to develop. A good place to start is by figuring out your strengths, and understanding where you might be able to grow the quickest.

One of my favorite examples of this is Andrew Mason, the CEO and Founder of GroupOn. Andrew was a music major in college, and graduated without a job. He quickly realized that in order to make any real money, he needed to develop some skills, so he learnt how to program.

Later on, he used these skills to launch GroupOn, and started learning about how to manage and scale a growing business. These new skills have allowed him to be a successful CEO in a very competitive industry.

Cultivate Your Personal Brand:

It’s great to have skills, but they don’t mean much unless someone knows about them. If you are good at something, don’t be modest! Make sure that people know what you can do and how valuable it is. This sense of expertise is what’s going to command the big bucks.

An exceptional example is Ramit Sethi, at I Will Teach You To Be Rich. Ramit was only 22 years old when he started blogging, and he quickly got featured in the Wall Street Journal. This wasn’t easy; he pestered editors night and day to give him a featured spot, and they finally gave in.

But it was worth it. Afterwards, Ramit’s traffic hit an all-time high. Moreover, he was able to tell people (and clients) that his blog had been featured in this prestigious publication. His consulting and public speaking rates went up and he has never looked back.

How do you plan to boost your True Net Worth? Please share in the comments.

It’s great to meet people, especially successful ones who can help you. But meeting them isn’t enough…your goal should be to build a long-lasting relationship. That’s when you’ll really start getting some value out of your network.

Here are several things you can do to increase your chances of networking success:

Put yourself out there:

Lots of people go to events, but very few make the most out of it. After all, it’s not easy to just casually approach someone and ask for a business card.

Instead, try to engage people in a more detailed conversation. Explain to them what you do and make sure to listen to their story. This makes it much more likely that they will remember you in the future.

If there’s an awkward pause in the conversation, you can use it as an opportunity to get their contact information (a business card, e-mail address, or phone number)

Follow Up:

It never ceases to amaze me how many people collect business cards and then never send a follow-up e-mail. Ideally, you should follow-up with everyone within 24 hours. This maximizes the chances that they’ll remember who you are.

You don’t have to send out a long, detailed e-mail. Just a simple note will suffice. Recap the conversation and give them a few options for staying in touch. You should also include a “teaser” – some reason that they should respond other than to just hang out…which brings me to:

Demonstrating Value:

People are busy. They don’t want to meet up with just anyone. Therefore, you should put yourself in their shoes and figure out what you can do for them. Here are a few ways that you can demonstrate value to prospective contacts:

Introductions: Think about your own network. Is there anyone that could help your prospective contact? If so, offer an introduction. This immediately elevates your communication to a higher priority level.

Advice or Expertise: If you are an expert in a certain area, it’s helpful to let people know that. This way, they are more likely to see value in knowing you. Be willing to share some of your expertise to strengthen the relationship…but at the same time, don’t give away too much for free.

Once you have given people a reason to stay in touch, the next step is to build the relationship by…

Meeting Face-to-Face:

Pick a convenient location: Make sure that you meet someone that’s convenient for the other person. If you care about the relationship, then you want to make things as easy as possible.

Don’t Be Late: There’s nothing worse you can do than being late. It makes it seem like you aren’t taking the meeting (and therefore the relationship) seriously. Better to be insanely early than to even be a minute late.

Don’t Just Talk Business: It’s important to be interesting as a person. Make an effort to get to know the other person and see if you have any common interests. People tend to loosen up if they feel more comfortable around you. Body language is a great indicator of whether someone’s interested in what you have to say.

Offer to Pay: If you’re meeting for lunch or coffee, at least make an effort to pick up the bill. If they resist, tell them they can pay next time.

At the end of the day, the goal is to build a trusted business relationship…and ideally a friendship as well. Think about it: people are much more likely to help their friends out when they need it, so your goal should be to make as many friends as possible.

What techniques have helped you in networking? Please share in the comments.