Unveiling the Success Secrets of Centimillionaires: Lessons from the $100M Club

While the public tends to focus on billionaires, and I share a fascination with studying them, there are ten times more people worth $100 million than those worth over $1 billion. We've had the privilege of working one-on-one with dozens of centimillionaires, engaging in fireside chats, helping them establish family offices, and closing deals.

Here are some common traits I've observed among the centimillionaires I've worked with and befriended. Of course, this is a generalization and won’t apply to every centimillionaire, but these patterns emerge frequently.

It’s important to note that the centimillionaires who engage with us through newsletters, books, our YouTube channel, and our Family Office Club events are mostly first-generation or early second-generation wealth builders. We don’t often attract third- or fourth-generation families who are usually focused more on diversification, though they’re always welcome. So, my insights lean towards founders and entrepreneurs who have created their fortunes.

Traits of Centimillionaires:

1. Momentum Matters: Like Newton’s First Law, these founders are always in motion. Success breeds success, and nothing sells like momentum. They never stop progressing—every conversation reveals 1-3 new and exciting developments. They’re constantly improving and scaling, and money gravitates toward that speed.

2. Strategic Positioning: The wealthiest and most successful founders don’t obsess over formalized five-year plans. Instead, they focus on what will make them dominant in their niche. Whether it takes three, five, or ten years, they’re positioning themselves for inevitable success, often driven by the question: What move or asset will catapult them forward?

3. Strong Structures: Reaching this level of wealth typically involves a strong preference for structured deals, including collateral, equity, debt, or royalties. Listening is key when working with ultra-wealthy clients, as understanding their preferences helps to build trust.

4. De-Risking Relationships Time is their most valuable asset, and they’re very selective about how they spend it. You must provide genuine value upfront and demonstrate that you’re not driven by scarcity. By offering genuine value first, you earn the chance to work together. This isn’t manipulation; it’s proving your worth without charging for every interaction.

5. Concise Communication The most powerful calls I have with these individuals are short—typically 5 to 12 minutes. They don’t have time for long conversations unless we’re diving deep into specific strategies or opportunities.

6. Expectations of Excellence: They have no tolerance for mediocrity. Everything must be exceptional, whether team members, partners, or events. They expect and demand excellence, and anything average won’t cut it.

7. Focused Offense: These families often concentrate on just one to three key areas. While they may have numerous LLCs and investments, their energy and focus usually drive their balance sheet forward in a few select spaces.

8. Excitement and Abundance: They thrive on excitement, fun, and forward progress. Often high-energy and quick to bounce back from setbacks, they focus on things that work. As venture capitalist Tim Draper once said, “Run towards things that make your skin tingle and run away from people who make your hair stand up.”

9. Risk Management: Most don’t take on excessive debt. If they have $40 million in debt, they likely have $150 million in equity on the same assets. They manage debt carefully, keeping low loan-to-value ratios, and are selective about when to leverage everything for a significant acquisition.

10. Internal Locus of Control: They don’t see things happening to them; they make things happen. These are founders who don’t settle for small wins. Often driven by personal or familial challenges, they possess a deep-rooted drive that fuels their sustained success. They create their luck and take control of their destiny, which sets them apart from the rest.

Finally, though the term "centimillionaire" might not be technically accurate by Latin or metric standards, it’s widely used in finance to refer to those worth over $100 million.