Other companies own and operate the messy, real-world parts of the businesses. Meanwhile, like a financial alchemist, Mr. Silverman spends his time and energy distilling, refurbishing, extending, linking, and leveraging his brand names. Despite the recent plunge in Cendant's stock price because of what appears to be a one-time accounting irregularity, Mr. Silverman has still made his shareholders wealthy. And, as shareholders prosper, Mr. Silverman's wealth explodes. Mr. Silverman has long understood that when consumers have many choices, trusted brands can act as a sort of Good Housekeeping Seal of Approval.
People can save time and irritation by choosing a brand they already know.
The average consumer is now besieged with 3,000 marketing messages a day, which makes a strong brand all the more important if a company is going to get its message heard. And the problem will get worse, for consumers and companies alike, as the on-line world spreads and information overload intensifies. So, no matter what happens to Cendant and its stock price, many companies will end up following the branding trail that Mr. Silverman has been blazing for the past many years. Having built an empire of brands, Mr. Silverman is now trying to go the next step. He faces plenty of obstacles.