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Four out of the top five biggest companies in the world are not built on the old oil, but the new oil and the oil of today is attention.

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Welcome to the game where we talk about how to sell more stuff to more people in more ways and build businesses worth owning.

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I'm trying to build a billion dollar thing with acquisition.com. I always wish pesos, musking Buffett had documented their journey, so I'm doing it for the rest of us.

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Please share and enjoy.

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So a friend of mine, Ryan Fisher, just showed me a clip on his phone of a podcast that I did with him. This is when I wasn't really actually I didn't do any podcasts. I was that wasn't doing any speaking stuff like all I was doing is building gym entrepreneurs teach labs.

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And in the clip he's like, dude, I found this gym and I'll show it to you in a second, but it shows how I was like screw content organic is stupid like just run ads and do outbound like you don't need anything else.

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I don't want to be known. I want to be rich and unknown and it's funny because he was like and now you're not doing that.

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And so what I'm doing is going to walk through my transition from I think organic sucks. Why would you build a personal brand only do ads and outbound to clearly what I'm doing now, which is going all in on media, personal brand content, etc.

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And so there was multiple beliefs that I had to have broken because I was very against it. And so I'll walk through each of these things and hopefully you can take away if any of these are beliefs that you currently have.

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I'll just walk you through how I at least overcame them.

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And so the first one was why does this even make sense money wise right because in the beginning when you're making the content, you don't really make any money from it and you don't do it.

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And so for me, when I was seeing this, I was like, if it doesn't make me money, I'm not interested.

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And so just being real. And then what happened and this was like the day that like put the first huge crack in the belief shell that I had around organic was when Kylie made the front of Forbes as a billionaire and she was 20.

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And at the time I was 27 and I think I had taken home 17 million in income the year before I was on pace to do like 13 to 15 that next year in terms of taking take home income and I thought like I was hot shit.

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And then this girl is seven years younger than me, fucking crushes me in net worth. And I was like, wow. And so it was just this huge belief shift for me or was like, what am I doing wrong?

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My ego felt hurt. So I started protecting myself. And I was like, Oh no, Chris Jenner's from mom. She's an absolute gangster. She was born into this royalty. It's not that she did it. It was someone else and blah blah blah. Right. So that's right. And then I was like, OK, ego protected. I feel OK now.

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And then I went back to my life. And then who did beauty sold a percentage of her thing for 600 million at the time is worth over a billion today. And I was like, some makeup chick, 600 million.

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And then Conor McGregor came up with proper 12 and 12 months later, boom, it was a $600 million deal. And then the rock had Tehran Montekela, which is now worth like 4 billion that it came out with. And I just kept seeing this again and again and again to the point where I was like, I believe something that's not true.

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So I talk about how skills, beliefs, character traits are the three things that hold back entrepreneurs. And this one for me was something that I believed about the world. And I was functioning as though and it was not.

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And so I was trying to find those things because they construct our reality. And we make our decisions based on the things that we believe to be true. And this was a statement that I believed that was not true. And so I basically was walking through reality that was not real.

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And it was that personal brand socks, personal brand make you any and seeing these overnight billionaires made a click for me.

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And so you'd still think, OK, so that's when Alex started to do it. Nope, not when I started to do it. I then read a book mind of all Robert Cochis is all maniac, which is really good, really quick read.

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And you talk about the four types of leverage in the book. And so in increasing order of leverage on the leverage pyramid, you've got labor, you get other people to do stuff for you, which means you get more of your time back and you get output above that you've got capital.

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So people give you money, you invest the money that other people give you and you get leverage by extension.

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The last two levels are code, so you got software and media. So if you think about this, you make a piece of code and then 10 million people can use it over and over again, that's leverage. You put one time investment, you get infinite on the other side with media.

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Maybe it's the same way, if I take how much time it takes me to make this video, one person, a million people, a hundred million people can see this video, which is what gives it leverage.

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And so when I saw that, that was what made everything click for me as to why these people were giving these crazy, crazy numbers when they had like I had her Kylie had a team of seven and she was doing 200 million a year.

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I was like team of seven and was because she had a compounding leverage vehicle built within her business. And that was when I looked at my own businesses at the time and realized I had nothing that compounded nothing.

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And that was a huge moment for me because I knew that whatever like I almost became dissatisfied with the business that I had because I realized that whatever I wanted to do next, I wanted to have a compounding vehicle, something that multiplies unto itself over and over again.

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And Warren Buffett could build Berkshire Hathaway because the money itself compounds and compounds and compounds and on a long enough time horizon, when you keep rolling the snowball after you do that for 40, 50 years, you have a big fucking snowball.

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Right, and I had no snowball machine and for those you were listening right now, if you think about your own business, if you keep doing what you're doing over and over and over again, if it's not significantly not just twice as big, but 10 times big or 100 times as big 10 years or 20 years from now, then you don't have any compounding vehicle that spinning the machine.

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And so if right now and you want to become ultra author, you want to become bigger than you are right now, you have to unlock one of those four types of leverage.

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And so when I looked at that pyramid, I was like, well, I understand the leverage of labor. So I've got that. I'm now in a position where I have capital that I can deploy. Now I don't have other people's capital because that's not what I want to do with my life right now.

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But when I looked at software and media, I was like, well, I'm not a code guy. That's just not my like, what can I be really great at? I thought, given my skills, et cetera, I could be better at the media side than I could at the code side.

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And so that was just kind of me saying, this is me. I think I'm going to go in this direction. And so that's why I decided to do the media thing. But I still wasn't there yet.

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Because now I looked at these people that are ultra famous and I was like, huh, well, I still rather be anonymous because, you know, they've got all these stockers and weirdos and, you know, hey, it is what it is.

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When you get exposed to 10 million people, if you figure 1% of people are crazy, you got 100,000 weirdos. All right, it's a lot of weirdos. And so anyways, I go to have dinner with a friend of mine, Dean Garcia, who's Tony Robbins right hand and he was huge on information for a long time.

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He's still, he's still has tons of stuff media wise. And he gets like weirdos that come to his house and all that stuff. And I was like, how do you deal with this? I was like, why do you think this, like, how is this worth it?

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You know, I mean, like to sell me on this because I just was like, I'm not sold. And so he's having down he was like, dude, if, if couple weird letters, you know, every day or every week is the price I have to pay for the impact I want to have.

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He's like, I pay that price any day of the week and twice on Sunday. And there was just like this pause when he said it between when he said it and we looked at me and I just felt like it hit me because I was like, God, I'm being such a pansy.

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Like I'm just, I want, I say I want to make this impact. I say I want to help all these people. And yet I don't want to be inconvenienced. You know what I mean? And I was like, I just don't think that when I'm 85, I'll look back and say, wow, like I was, I got stopped at dinner a bunch of times by fans.

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I'm so high in mighty that that would bother me. You know what I mean? And so that was the moment that the watching other people hit it big overnight, understanding the why behind it with the leverage and the media and how it worked gave me kind of like the mechanics of it.

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And then having Dean kind of break my belief around fame being a vehicle for impact rather than an inconvenience for my life. Those are the big things that kind of like big dominance had to get pushed over for me to start doing this.

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And so one of the interesting things about this is that right now the entire economy has shifted. So if you look at from like a century perspective, the last century was a century about power. And when I say power, I mean like energy.

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So like the biggest four out of five companies 20 years ago were all energy companies. They were all power oil, et cetera.

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And then if you shift today, four to the five biggest companies are what? They're media companies. And it's not even media that's the output. The thing that is being pumped and drilled every day is the attention of the masses.

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And so if you think about what what makes money is it's the things that are scarce right scarce resources are the things that are the most viable. And so oil was the scarce resource. And now attention is the scarce resource.

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And so that's why attention is the new oil. And so if you want to have a machine, you should be pumping and drilling for the most viable resources out there. And so now maybe you'll make the next Facebook, the next TikTok, the next whatever.

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Those are the platforms for pumping. But then you have all these little mini drilling companies, if you can think about like that, that you used to have, you know, got like oil is the big thing. And then you've got exon mobile, whatever. But now you've got Gary, Tom, Ed Milett, Andy for sale, like all these other guys who are pumping lose house, you know, pumping oil.

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The attention of today, the oil of today, which is attention. So I thought that was really interesting. Now one of the last things that I didn't like about the whole content media stuff. This is a little bit more mechanical is I hated the idea. I hate like if you've followed any of my stuff, I hate doing something that I don't get credit for later.

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And what I mean by that is like, if I do a rep at the gym, I build that muscle and that muscles permanent sticks. Okay, not forever. I'm 85 but like for a long enough time that I'm okay with it.

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But when you go out and you make a decision about what you're going to have for lunch, to me, it's such a waste because I'm like, that decision is not going to stick with me, you know what I mean. And so I want to build something that I don't have to rebuild again later.

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And so the idea of making a short that is going to you float today and then disappear into the ether tomorrow, right, or make a post on Instagram that's going to be gone in a week like no one's ever going to see it again.

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To me, taking the the scarce resources of my time and then having advantage is just I couldn't I couldn't make that work for me.

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And so it was a huge belief that I realized that the media, the content is not the output is the input, the output is the audience and the audience is what compounds the audience is what sticks.

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And so you're not wasting your time on something that's going to disappear in a while, you're gathering the scarce resource and the audience is the thing that pumps attention over and over again, you're actually increasing your land mass for attention to drill from.

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If you think about media in this way right and so I thought it's like me thinking that like every time I pump something for oil, it was a waste when in reality that's not the thing that I'm doing the output is the thing that I'm doing it's the amassing of the land it's it's the pumping of the oil that is the long term output of the behavior.

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And so once that shifted in me I'd stop seeing it as a waste because I thought if I got one more person who's going to see this short or see this long or see this post or see this tweet or see this whatever that was the point.

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And so once I shifted that then I stopped feeling insecure about like wasting my time etc.

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And so one of the really interesting things with media and audience alright so this is from a cost perspective when you expand the time horizon is that media will only become more expensive over time it literally only goes one way which is up on a long time horizon, advertising more becomes more expensive content creation becomes more expensive it becomes increasingly fragmented to cost more to do it across different platforms it just becomes more expensive.

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But here's what's interesting audiences and their attention becomes more valuable over time and so we had this unique pairing of something that will never be cheaper than it is today and the output of that thing will never be less valuable than it is today so the audience becomes more valuable the cost of getting the audience becomes more valuable which means the best time to start is now.

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And that soon as I realized that I had a cost curve that was going up and the resource the value of the resource going up on the other side I immediately felt the sense of urgency of like oh my god I should have started this five years ago and so I had this tweet that went viral that was like my biggest regret is that it didn't start sooner and I got a bunch of people were like dude you don't seem like time person who would regret things and I really don't but that feeling of knowing that I have two things that are working against me give me the decrease my action threshold enough that I was like I'm going to do this right.

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So that's what got me to take that next step as a fun side note about media businesses in general media is the only business we're marketing and delivery are the same.

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So something about this the way you market the brand if you had let's say a show like Joe Rogan Joe Rogan's marketing for Joe Rogan is his delivery for Joe Rogan which is one of the ways that media creates even more leverage because if you think about from operational perspective you can just have one team

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that does all days focusing on marketing and expanding the audience pumping and drilling and pumping and drilling the audience because it's getting you new people and the more people you get from your marketing the more eyeballs and earballs you sell on the back end through sponsors and endorsements now we're not doing that but I find it really really interesting to think about that is that there's no other business where the thing that you market and the thing that you sell are literally the same kind of interesting.

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And so one of the things about audience growth that I started looking into was you probably heard give give give ask right or if you know my my kind of is on that is like give give give give give get because people to start handing you things but if you look at platforms that are trying to grow right they're trying to grow the audience they're trying to find more oil to drill right more land to draw all from rather the ones that are new have a different give to ask ratio and if you notice that so when a new platform comes out they don't have ads.

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They just have content content content content and so if you think about that in terms of like giving all they're doing is giving giving giving giving giving giving and then what happens is they have this radical expansion and they just get gobble and gobble and gobble market share.

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And the moment they start introducing ads right the viral growth starts to decrease and so it begs the question why would you make your asks if you know you are multiplying until yourself you are compounding the longer you just give before making your ask right this is why having a long time rise and it's interesting.

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Important so there's been a ton of research that's actually been done on this and I looked into it so the mature platforms are not in expansion mode anymore they're in mining they're in reaping and and selling the eyeballs and the earballs as much as they can.

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And so if you look at like television or radio they have roughly a four to one ratio of giving to asking if you would put asking as commercials right so it's 13 minutes per hour that's dedicated to commercials compared to 47 minutes of content all right per hour.

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Kind of interesting and so if you look at Facebook Facebook right now if you scroll your newsfeed it's four to one they figured this out they know that people are willing to give four units to everyone roughly as they consume content now here's what else is interesting is that the audience that is on there has been conditioned and reinforced to continue to want to consume it and they're willing to incur the cost of the commercial.

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But somebody who's new may not have been weathered or conditioned over that period of time of slow integration of ads that they might not be they might not be as interested in staying on this platform and so the moment you start.

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Integrating the ask and integrating the takes or whatever you want to say it is the moment that you consciously decrease your growth you consciously say I don't want a bigger better audience than I have today or i'm willing to trade something off and that's okay you got to eat etc I understand.

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But if you're thinking like super long you have a compounding number that you were literally slowing down your rate of compounding the moment you start doing it and so.

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If you think that you're going to be in the game for a long time and you want to be as big as you can later and you want to give to the audience all of the things of providing value are literally aligned with massive growth.

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It's just you got to wait and so rather than reap and harvest the way TV has and why Facebook doesn't grow anymore because they're overly added you know advertised on etc it's the platforms that have the lowest amount of ads that get the most amount of reach the most amount of compounding now they have a business model they have to make money at some point I get that but the longer you can wait the bigger they ask can be at the end the longer the runway the bigger the plane that can take off from it.

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So one of the things that interesting about digital media versus old forms of media is that other media made zillionaires to write newspapers back in the day direct mail stuff billboards like radio radio is digital but but we'll just go with me on this warren buff and invested in so many one town newspapers because they were monopolies there wasn't enough room for another paper to come in town and a newspaper had two monetization things which may never be available again and cable TV had the same thing.

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People would pay to have access to the content and advertisers would pay to have access to the eyeballs they got paid on both sides and people became exorbitantly wealthy from this model the cable TV became a really wealthy the newspapers became exorbitantly wealthy and they were able to justify it because there was a cost of distribution there was a cost to distribute the newspaper now they probably could have lived on just the ad revenue alone.

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But they chose not to because they were business people they're like if they're willing to pay for it and so are they we'll charge them both but the thing is is that digital media eroded that first sale to the customer which is when Facebook came in and said it's free and it always will be right and they stuck with that because they realized that because it was free they're able to gobble up so much more media they're cost to acquire eyeballs at a platform level so low that it made more sense for them to not try and monitor the

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monetize the audience except through the advertising and so media has changed in that you can now make one video like this and 10 million people can see it and so that is that is what I took it took me way too long to realize that the game had changed fundamentally in terms of how media is monetized and how media can grow a brand and the amount of reach that a single video single bout of effort can deliver.

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And so I'll make a prediction right now so if the Rockefellers were built on oil the new generation of ultra wealthy people be built on attention.

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Zach is going to continue to be a gangster because he has the attention economy you know he's buying attention then on the creator level you've got Mr. Beast right and people who have mega amounts of attention amassed and pumping towards them.

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I think he opened up a restaurant in a local area and the 10,000 people show up at a local restaurant right like I don't think people still understand because we as humans can't fathom or comprehend the difference between a million and 10 million because we can barely even comprehend what a thousand is so it's hard to understand what a million versus 10 million versus 100 million is but I'll put it to you this way if and and this is with all the love to Gary.

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If Mr. Beast lost all of Gary's attention from the amount of attention he has he would still have over 100 million people it's kind of like Elon Musk losing all of Donald Trump's net worth and still being worth the exact same amount of money like there are levels to this game and so I don't think people realize that he's 24 and media compounds.

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He's number one comma and has 60 years in front of him and people are judging his business acumen today when his acumen was built on building media once you have tons of media the monetization is is is the easier part the question is just which where are you going to monetize that you're going to monetize their endorsements you're going to monetize it through through companies are you going to monetize it through moving markets which when you're that big you can do that there's so many ways to monetize it at that point that I will make prediction

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that he will be a sense of billionaire not just a billionaire but a sense of billionaire which I know is bold and I just think that anybody who disagrees with that is always entitled their opinion but you haven't played it out like you haven't given 60 years and he's conquered every new platform right he's the fastest one on tiktok fat most followed person on tiktok right he just recently decided to get on there like just recent was like all right I'm going to start doing this and boom he's almost got 50 million people on his tiktok right and so he's growing faster there than he did on YouTube.

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So think about that and so it means like he gets the short game he gets the long game and so becoming a master of media is a huge way of creating leverage because if Kylie can just point Mr. Beast can just point and then you have a hundred million people who buy anything you have a billion dollar plus company.

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And so for that reason my whole goal was I just started to create the content out there was that I looked at all the things that I just said I know that the people who build the biggest things don't ask and they grow the fastest so that's why I was like I have nothing to sell you right.

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The people who have the longest time horizons allow the compounding to work in their favor for a long period I realized that the audience was the output the attention is the output not the media that I'm creating so that was a realization for me that allowed me to get over the fact that some things that I make vanish forever.

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I realize that for me to have the impact that I wanted to have if I claimed which I do that I want to make real business available for real I want to make real business education available to everyone if I claim that if I say that that's what I actually want to do that I need to match my actions to that otherwise they're just empty words.

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And so that means that if this is the price I have to pay if getting stopped when I'm walking out and you know if I'm at the gym and I have to take my headphones off a couple of times because someone wants to say hi or take a picture if that's a price I have to pay for make the impact I want to have.

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Then it's a price that I'm willing to pay because this is meaningful for me and I think what I'm 85 not going to look back and be like you know what I'm really glad that no one knew who I was and that I had all this information that we we've gathered and it's just that is going to vanish with me and so it's like I'd rather have that knowledge not vanish with me at all be completely spread have a whole horde of entrepreneurs who are younger better faster sharper than I was who can pass the torch on and I hope that those guys will pass it to the next generation and then as a species you know I mean we just.

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Move forwarding it better so that is why I decided to make the plunge and do the stuff that we're doing now pump out the amount of content that we're making it was because I had an internal shift of realizing that if I wanted to make the impact I want to have then I was willing to do it.

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Amos and Asian quick break just to let you know that we've been starting to post on LinkedIn and want to connect with you all right so send me a connection request and note letting me know that you listen to the show and I will accept it there's anyone you think that we should be connected with tag them in one of my or lalus posts and I will.

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Give you all the love of the world all right so let's get back to the show.

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The wealthiest individuals of the last century were built on oil they were built on energy and if you look at fast forward today four out of the top five biggest companies in the world are not built on the old oil but the new oil and the oil of today is attention because attention is the scarcity resource on the planet right now even scarier than oil because people are willing to pay even more for it.

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And so the companies that have figured out to a how to grab the land they're literally buying up the real estate of the collective attention that exists right think about every sense that you have you have 24 hours a day that your ears are open you have 25 hours a day that your eyes are open and so the idea is how can we capture as many of those hours from as many people as possible and the war for our minds.

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And so the people who are creating the platforms that other companies can come and drill they're basically the digital landscape they've been enveloped the world the oil tycoon tried to go and buy a state negotiate haggle with the farmer to get his things the new world today they don't need to haggle with anyone they just take it right they're only competing against each other they're competing against the couch they're competing as television they're competing as radio but they're fighting a war that they can't lose because they have so much more analytics they have so much more real time data that they're going to be able to do that.

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They can adjust how they combat the old school which is why they're killing them and so the total amount of attention that exists is every human's eyes and ears collectively 24 hours a day that is the pie and they're fighting for it and so the ones that are able to map to as much of that which is why the AR thing it's really interesting when they think about that if they can get you if they can literally be the lens through which you see the world they own your most precious resource your site 24 hours a day Friday.

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And in that way how do they they can put an ad there they can have you pay every month to just not have ads like there's all these different things that they can do and it's because that is the new game our senses are the real estate and our attention is the oil that's getting pumped from it.

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The reason who to the rock Conor McGregor Kylie were able to translate their fame their attention into money is that one they spent a long time building it right and amassing that attention because they knew that the

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moment they did decide to monetize it it was right there. Now the mistake that you've heard me say a million times when I'm going to say it again that many newer creators make is that those people waited years think about how long the rock has been building the brand of the rock before he signed his deal with underarm before he he made Termana before he made zoa right before he did these things he was in it for 15 years 20 years he'd been building this brand and so people piss and moan about the fact that they built you know they posted content for four weeks and they're not famous yet.

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It's like this dude put in literally 100 times the effort and that's what you're just posting once a day this guy's everywhere he's doing speeches he's on WWE he's making movies he's in shows he's doing all of that every day and he's been doing it for 20 years and so some people are somehow surprised that he's crushing them right and so one is they waited a really really really long time and they didn't ask they just they gave right in their own way because everyone's giving you know Kylie's give looks different than the rock says but they give to their particular audience.

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The next thing is that the thing they chose to monetize from was on brand and this is like a key point it was on brand in that this is something that their audience already dug right like the rock signing the deal with underarmor makes complete sense because fitness is a core part of his brand right him working now put in the 4 a.m. grind like all of that is something that underarmor wanted to tap into to associate their brand with and so what's interesting if you think about this is that the biggest brands.

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That exist come from the endorsements of celebrities so hear me out we can't be Kim Kardashian like a girl can't be Kim right so Kim is the ultimate status then Dolce and Gabbana signs Kim and says where are you people then see the status that Kim has and associate it with Dolce and Gabbana and then little lady who's got money and doesn't have status trades her money for the bag that she can associate with Kim to get the status that's the game.

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And so that's Kim status now if the rock did it he does kind of dress fancy but it probably wouldn't be on brand for him to start rocking like it just wouldn't like you can feel it right now you're like I mean I guess he could but it wouldn't really make sense right but him doing the underarmor deal completely make sense him doing an energy drink completely make sense because he's all about he's like powering you know grinding going hard it's on brand.

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Same degree Taramana he always that he does his cheat days and he has his little sipper of tequila and it made sense that he started his own because it was on brand if all of a sudden he started a whiskey right even even an alcohol I think about how tiny of a difference that is if you just started a whiskey it would have been weird it's not on brand and so what these guys did is they waited a really long time.

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They figured out which of the messaging buckets are the things that are kind of they represent like this I believe this is what I'm about right and the people who follow me vibe with not only one but a lot of times multiple of these dimensions which brings up another point which is that the people who are the most famous if you look at the big ones you look at Rogan right he's got UFC that he's he's into fighting right he's also a really amazing comedian in loves the comedy community he's also got a fitness background so he like loves talking about fit

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fitness and biohacking and supplements and all and like brain stuff he loves all that stuff and then he loves aliens and UFOs right and so you talk about all these different like and these are all totally different but the more dimensions that someone can go deep on the the more they'll get an audience from comedy and then they'll cross pannate them with fighting so you all the sudden people who really like comedy you're hearing Joe and being like you know what I'm going to go see them Greg or fight right which seems completely contra and on the flip side you got these guys from fighting we're like you know what UFOs might be real.

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Right and so it's this total pollination which ultimately compounds the audience even faster so like what is it that the mega stars have we had the rock he's got movies he's got TV shows he's got he's got his drinking thing not that he drinks but like that he likes to relax and and peel back he's got his wife and his kids that's another bucket for him right and then he's got his his hardcore fitness vibe in terms of him training hard but he also have I would sub segment this is at his 4 a.m. wakeups his no excuse attitude it's like a whole another bucket that he did.

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Demonstrates from a psychographic standpoint and so these people have multiple and he had his WWE forgot about that right he is these multiple dimensions and so these mega stars go deep on many things and in so doing capture bigger and bigger audiences that compound on themselves and they wait because they stay loyal to their brand and then they appeal to a segment of their audience or they try to cut across the one that appeals to the most of them and in that way they'll monetize the best and not detract from the brand because when you're monetizing you're you're rarely building the brand.

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Unless the product is exceptional now I don't know if most of their products are exceptional be real I don't know but the next level of this would be that they not only serve the most of their audience but that the product they give is actually so good that the product does the expansion in and of itself rather than just their personal brand and so there's only two ways for people to find out about the stuff you sell you can tell them or other people can tell them there's only one of you so think about which way is easier it has more leverage that being said now because we have the mega star

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microphones we have with media a single person can have tremendous leverage unlike we've ever seen but still when you've got Caden and sitting across the kitchen table and she's like why try Kylie's lip thing is actually pretty good that's where the purchase are made it's a it's a I think Seth set go and said it's a million whispers it's not one megaphone and that's where the real virality hits so Kim Kardashian and Dolce is an example the rock and under armors an example but let's look at LeBron and Nike they wanted to sign him because they figure he is going to

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be iconic he is iconic right they're betting on the fact that his brain is only going to continue to grow because media only continues to expand right over time and they wanted to associate Nike victory with somebody who's victorious and so they reinforce their brand position

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through the endorsements they get from people who actually do it because the brand can't be victorious in and of itself it's not a person right and so they got to find the people who embody the spirit and the values of their brand they make

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the endorsement people make the association their mind and then they buy the brand to get the association of the thing they could never do but always aspire to so there's two terms they get tossed around a lot in the entrepreneur community leverage and compounding

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all right leverage is the difference between what you put in and what you get out all right so for example literally Archimedes had a stick and you've got a little fulcrum which is a little triangle you got to stick on it and depending on where you put your hands more weight

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you can lift so you're the same strength but depending on where you put the stick on the fulcrum the more power you can have on the other side right the more left and so leverage is the difference between what you put in and what you get out and the more leverage you have the more you can get out right and so

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if I make a hundred phone calls that is my output for eight hours whatever if I spent eight hours hiring eight people and then they now make a hundred phone calls every day I spent eight hours one time and then I get eight hundred calls every day from now until I until

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kingdom come from that one eight hours so if I eight hours of calling versus eight hours of hiring somebody and training them to make those calls forever which one has more leverage right the second one so that's labor with capital it's like I can go gather all this money over my lifetime or I can just ask people to

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have gathered all the money for me and then I say I will allocate it for a percentage but my time basis is zero the only time basis I have there is literally just the getting of money from those people not

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not the income generation it's just literally getting the money that they spent their time generating to give to me to then invest and I get a percentage of that with no time spent which is how

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Warren Buffett Carl icon some of these huge people David Rubenstein which is Carl Isles CEO and founder

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all these people built their next level of wealth so like ancient Egyptians leverage through labor old school American tycoons leverage through capital and the new

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school is through code software and media eyeballs so the compounding the second part of that is how does something feed on itself and so the way that something compounds is

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that the baseline that it starts with never gets lost it only grows unto itself and so if you think about a dollar getting 10% right more it's a dollar

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and 10 cents next year now if I get 10% again then I get 11 cents on my dollar and 10 cents and now it's 121 if I get 10 again then I get 12.1 cents for the next year which goes to 132 point whatever and so the idea is that when you

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have a long enough time rise in that little bit that went from 10 cents to 11 cents 11 cents to 12 cents in 40 years goes from 1 billion to 1.1 billion right you just add zeros to the machine

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and so if you want something that's going to become a huge you need something that compounds and ideally even multiple forms of leverage right that compound unto themselves and so if you look at Facebook for example which is a simple one they leverage because

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Zach wasn't actually doing the stuff inside of this company he got capital because he got a whole bunch of other people to give him money rather than trying to make it in order to build the thing he had

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code because he had software that they could build one time and then infinite number of users could build it and then they have built on media right so at all four which is why it's you know one of the most valuable companies in the world and so you look at

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Amazon same thing right the media they have is of buyers and customers people search for sit they want to buy media really high intent media you look at you look at Google same thing it's they're searching for stuff they

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want to know Amazon searching for stuff you want to buy Facebook searching for people they're all search engines in their own way but of different commodities I'll make a prediction

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I do think that there will become micro more fragmented channels over time in terms of media I think they'll become they'll be deeper drill just like old school media they had four

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channels and need a hundred channels and then we went to four channels which is Facebook Instagram LinkedIn whatever and then we're talking about like oh man when I was a kid there is only four platforms for social media now they're hundreds

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and so that's Alex's prediction of how I think media is going to transform over time which also means that the people who are really going to be able to stay big and stay relevant will have

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to build the infrastructure in order to package their content in such a way to be present across all of them and so right now is why it's one of those crazy times where if you run an ad on one of the four TV channels everybody knows you the fact that Mr. Beast is 24 and can have a hundred

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million followers is something that I believe is a blip in time and then for that to be recreated ten years from now will be significantly more difficult because he wouldn't be able to start in immediately have access to the entire world because also because social media is becoming weaponized right from a propaganda perspective

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and for those who don't look like propaganda is an actual part of military warfare there's a whole thing about it right siops I agree or I think that media will become nationalized for many many countries it already is in a lot of countries America is just one of the elements that doesn't so we allow

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businesses that are owned in other countries to own the media and the attention of our population it's kind of wild and so I don't know if that's going to continue forever

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I don't think it's wise that they do that but if that's the case like you know Russia's building their own version of YouTube China's building their own so they want to they everyone wants to control media right which is why you know the first amendments of the US are freedom of press right so we want to be able to have that we'll have to look at what that looks like when

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when that law was written the UK would have no way of doing it but now the UK absolutely could own the newspaper that everybody reads right now we don't have a beef with the UK but you understand the point

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and so big picture leveraging compounding leverages the difference in what you what you put in and what you get out the people who make the most money or the ones who have the most leverage because everybody has the same amount of time

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it's just who gets the most back for their time right and compounding is that now that you've made that trade with your leverage that trade that you made one time is it going to compound unto itself and get you even more back because compounding is a form of leverage

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because if it compounds means I made this investment one time and then 20 years so now I get even more back from that one time investment right so it's another way that you get leverage

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attention to scarce resource because there's a fixed amount of it you only have so many hours per day and so many senses years and eyes that are turned on that's it so there actually is a fixed amount of the resource right just like oil just like land right these are all fixed resources

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and so the interesting about right now is that attention was going wildly under monetized so up to this point the vast majority of people stays their eyeballs were not being monetized the things they were listened to were not being monetized

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and so right now it is a land grab for the entirety of the pie of our collective attention and so right now that's why these companies are just gobbying up so much money because they can just sell it at zero cost to other people 100% margin like think about this

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when you pay Facebook a million dollars a month or five million dollars month some of the companies that we have do in our portfolio we don't even get a rep

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like think about a business where you sold something and someone paid you five million dollars a month for the thing and you don't even get a representative to talk to

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and the cost for the media the cost basis is zero now you have the people who run things you have the software about but the actual cost itself is zero

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like that is how you make so much money like the cost basis on oil once you bought the land is zero you have the equipment you have literally the energy to pump the the stuff out but like it's like water

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except they sell it for two hundred dollars a pair right that's how it works so when I was looking at virality viral growth people who have compounding growth

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in their media because their audience compounds so if you have 10 people and then next month one of those people brings a person and you can count on that consistently

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then next month you have 11 people and then the next month you have 12 people and then 12 and then it keeps compounding right

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and so that is how audience compounds right it's not actually your media that compounds is the people telling other people that's the compounding vehicle behind media

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and so the more giving you are the more your audience is going to want to share your stuff because there's relational capital that they gain by sharing it

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right so if you think about like people only share stuff because they're self interested they say hey if I share this funny thing or I share this insightful video

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this personal thing more of me right it's not because of you it's because you provided enough value to them that they think they want to be able to just like the bag in the status

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they want to be able to associate the value you provide with themselves and so that they get status as a result of sharing your thing

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and so you want to make the stuff you have as good as possible with as few takes or ask as possible because you want to make it as shareable as possible

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because if there's a if there's a take in the video the likelihood that it gets shared as you can feel lower which decreases your own virality

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the platforms that grow the fastest are the ones that give the most because if they give the most the audience then shares them through word of mouth and through

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you know sending them to friends etc right and if we're thinking about our own content in that way

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we want to if at least if it's me if I want to grow as fast as possible I want to decrease my give to ask ratio to such a degree that it becomes crazy that someone doesn't want to share it

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like my whole goal when I started this channel and all the different platforms that I have is that I wanted people to say one thing

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this is better than the stuff that I've paid for

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it's my it's my favorite comment when I see it on YouTube and when I see it on the on the Instagram comments and LinkedIn and Tik Tok and all the stuff like I can't believe this is free

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that is always what my goal has been because if I can do that then I can siphon a whole bunch of the market share up and not monetize anything right

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and everybody who's trying to compete for the same attention is going to do that but they have to throw their asks in because they got to make money and I don't need the money

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and so that gives me my long-term enduring advantage and as a side note if you ever want to have a competitive advantage

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have it be patience because no one wants to copy it

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so with all that being said how do you reconcile the whole give-give-give don't ask be patient with like dude I got to pay rent I got to like feed my kids

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like this is all awesome but like how do I actually do this in a way that I can feed myself good question

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so I think of it like this is that you promote publicly you give publicly you sell you ask privately

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and so if someone follows your stuff right and they're interested enough they will seek you out

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and then when that happens by all means you sell and sell like you mean it

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that way you get all the compounding of the top of funnel that keeps multiplying itself

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and this isn't compounding but it doesn't need to be because it's attached to a compounding rocket

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and so if you just know that you're going to monetize 10% or 1% of your audience every year

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if your audience compounds then so too will your sales even though the sales exchange itself

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isn't necessarily value additive you want it to be but like people are going to tell their friend like

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dude you got to go through the sales process I just went through like it's not really something that people share that way

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so how does this stuff work with like outbound right like how does all that stuff that I just said like work with outbound

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well you're not going to outbound from your personal brand right but you'll outbound from the on behalf of your business

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now when you have an outbound strategy and this could be totally separate whatever

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but if you have an outbound strategy the idea is that you recreate the organic experience that someone

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would do on their own if they found your personal brand organically

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and so like acquisition.com could reach out to companies and say hey you know you should partner with us

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but I don't have context right and so the deal structure I'd have to give would be significantly worse

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and I'd have to take them through a significantly longer process

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and so if I wanted to get the same types of companies who had the same values as me

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who had all these other things I would have to take them through a tremendous amount of filters

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and indoctrination in order to recreate the same end customer from that process

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now there's nothing wrong with that it depends on the complexity of the thing you're selling

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if you're selling Salesforce the software you absolutely can do reach outs

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but the thing is is that when you're building the personal brand you're actually not selling the software

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you're selling values you're selling ideals

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and so outbound works very well in a transactional environment like I could start the brand

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and then the brand has an outbound team it's better than Alex being the outbound team in my opinion

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so just like Mr. Beast the rock who to Conor McGregor

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my prediction for the people who will become the new sense of billionaires etc

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is going to be people who can do three things

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they'll be able to capture they'll be able to hold they have to be able to multiply attention

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and so not only do you have someone's attention you have to be able to capture it first

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you have to behold it for instead of period of time because you are interesting you are fascinating

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fascinating you're really fastening them down and pulling the attention from them

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and then you get them to tell other people and that is how your attention multiplies

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because your audience grows

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so the people can do those three things

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are the ones who are going to become ultra ultra ultra wealthy in the future