Relationships: Personal or Professional. Once you have worked/been with that person for a long time, you can trust them more to align with your needs and do what’s right. Might not even need legal contracts. Mutual trust has a compound effect. Reduces friction.
Most of the benefits of compounding come at the end. It’s better to have a few deep, compounding relationships than many shallow non-compounding ones.
Price Discrimination: You can charge different people different amounts based on their propensity to pay. Now, you can’t just charge more because you don’t like them. However, if you think they will pay more – you can charge more. Just add a little something extra. Business Class is like 5x more money, for a slightly bigger seat and better service.
- Freemium versions typically do almost everything. However adding hosted service or something can be 5x more.
- Consumer Surplus: How much more the customer would have paid.
If you are working a job, and want to move into something more, the thing to optimize for is specific knowledge. Judgment takes time and experience to build up. You have to put yourself into positions where you can exercise judgment, which comes by taking on accountability. Leverage is something you are given much later once you have shown your judgment. Unless you learn code or become good with media – these are permissionless leverage. Leverage and judgment come later. Accountability can be taken on immediately. You can say “hey, I will take charge of this thing that nobody wants to take charge of.” Accountability is where you can step up. Specific Knowledge is built up by taken on accountability for the things that nobody else knows or wants to do. Especially if it’s something you enjoy doing, or are naturally inclined to do.
Find anything that you have interest and dive into accountability. Don’t worry about short term compensation. Solve the hard problems, and take on accountability, and people will line up behind you.
Combine your interest and skills in a unique way to make not-yet-understood technologies more accessible.
To Summarize: Productize. Yourself.
for a full transcript + podcast (worth the listen!!) = https://nav.al/rich