The power of virtuous triangles

Not my car, but you get the point.
Not my car, but you get the point.

Some years ago, I worked for one of the top dance music record labels in the world, Armada Music in Amsterdam.

It’s the record label of frequent world’s-number-one DJ Armin van Buuren.

Armin’s business model is insane, and it’s something I’ve always thought of as a “virtuous triangle”.

There are three parts to Armin’s empire:

  1. The DJ. Armin gets exorbitant fees to perform around the world. And the music he plays largely comes from the catalog of his record label.
  2. The record label owner. In addition to a gigantic back-catalog of dance music classics, Armada supplies Armin the DJ with a never-ending supply of new tracks. He gives publicity to the catalog by playing the music live, and in turn the music generates extra money in the form of streams and buys.
  3. The talent manager. Throwing giant events is big business. When you’re selling tens of thousands of tickets, picking the right talent is key. Ensuring your signed artists perform at these events compounds the ROI.

Each of these parts of the triangle is distinct, yet each reinforces the other.

Whenever you see an outsized personal or business success, chances are there is something like this triangle at play.

On your own path, are your activities reinforcing each other or hurting each other?