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(1/15) leverage in 2020 is about labor, capital, and low marginal cost products
@EricJorgenson and I discussed "Leverage" as new means for building massive companies last week.
he wrote @naval almanack/expert at models. got me thinking.
could I map all my "leverage"?
@EricJorgenson and I discussed "Leverage" as new means for building massive companies last week.
he wrote @naval almanack/expert at models. got me thinking.
could I map all my "leverage"?
2/15
capital leverage: money works for you
product leverage where reproducing costs almost nothing
people leverage
People first.
Don’t get stuck with too many consultants. You want to quickly move them into either highly critical FT, or cheaper pay per task roles
capital leverage: money works for you product leverage where reproducing costs almost nothingpeople leveragePeople first.
Don’t get stuck with too many consultants. You want to quickly move them into either highly critical FT, or cheaper pay per task roles
3/15 When you find good people, pay them lots.
Younger = better. More time for you to compound gains together. (70 years to live vs. 20)
Younger = better. More time for you to compound gains together. (70 years to live vs. 20)
4/15 PPT = pay per task. A billion dollar company will be created in next 5 years with no full time employees.
Their "stack" will be a pile of processes/tasks that are cheap to execute.
The genius is the system.
Their "stack" will be a pile of processes/tasks that are cheap to execute.
The genius is the system.
5/15 examples in Latka world
@mubashariqbal is super talented. @ProductHunt maker of year. moves fast. pay him lots, give him lots of responsibility and get out of the way.
Sam is PPT. I've paid him $3 over 2500 times for each podcast episode.
examples in Latka world@mubashariqbal is super talented. @ProductHunt maker of year. moves fast. pay him lots, give him lots of responsibility and get out of the way.
Sam is PPT. I've paid him $3 over 2500 times for each podcast episode.
6/15 lets move to product leverage.
It costs me almost nothing to print another copy of my book. 30k copies sold. In airpots. Lots of social power.
Magazine costs $1.50 to print. Cheap to reproduce.
Podcast is media. 12m downloads. Sponsor $$. All margin.
lets move to product leverage. It costs me almost nothing to print another copy of my book. 30k copies sold. In airpots. Lots of social power.
Magazine costs $1.50 to print. Cheap to reproduce.
Podcast is media. 12m downloads. Sponsor $$. All margin.
7/15 After you have core group of good people, you must build Product leverage (start with media, THEN code toosl)
@Naval, @EricJorgenson say this way better than I can (go read the book)
The Top Entrepreneurs podcast --> http://Getlatka.com
@Naval, @EricJorgenson say this way better than I can (go read the book)
The Top Entrepreneurs podcast --> http://Getlatka.com
8/15 Most SaaS companies today are only thinking Code as Product Leverage.
The winners of tomorrow will think Media + Books + Services…. I’ll call it SaaS+
@Drift has a book. @SalesLoft has a podcast. @Airbnb has a magazine.
The winners of tomorrow will think Media + Books + Services…. I’ll call it SaaS+
@Drift has a book. @SalesLoft has a podcast. @Airbnb has a magazine.
9/15 Media leverage means attention.
You can't buy this.
@Quibi couldn’t buy attention with $1.6b dollars.
Because of this, attention is the scare resource today, not capital.
SaaS co's will spend fortunes trying to buy. Can't. Must earn.
You can't buy this.
@Quibi couldn’t buy attention with $1.6b dollars.
Because of this, attention is the scare resource today, not capital. SaaS co's will spend fortunes trying to buy. Can't. Must earn.
10/15 Capital leverage.
This is most powerful. $1 in, $1.40 out.
Lots think they have capital leverage but can only put $100k "in the machine" before economics get worse.
You have Capital leverage when you can handle billions @ same economics.
100% my focus today.
Capital leverage. This is most powerful. $1 in, $1.40 out.
Lots think they have capital leverage but can only put $100k "in the machine" before economics get worse.
You have Capital leverage when you can handle billions @ same economics.
100% my focus today.
11/15 I didn't know all this in 2015 when I launched my podcast.
But this mental model (credit @EricJorgenson for the promp) helps me organize it all:
But this mental model (credit @EricJorgenson for the promp) helps me organize it all:
12/15 I have media moat (product leverage) w/ podcast, magazine, book, getlatka, founderpath code
Great peoplearound me make this happen (all 3 are critical, FT, Consultants, and PPT) http://geni.us/TopEntrepreneurs
media moat (product leverage) w/ podcast, magazine, book, getlatka, founderpath codeGreat people
around me make this happen (all 3 are critical, FT, Consultants, and PPT) http://geni.us/TopEntrepreneurs
13/15 http://Founderpath.com is capital leverage. A machine that takes in capital and spits out more.
We do this by enabling founders to get more "product leverage"
(take our money, build better SaaS/code)
http://Founderpath.com is capital leverage. A machine that takes in capital and spits out more. We do this by enabling founders to get more "product leverage"
(take our money, build better SaaS/code)
14/15 Shout-out founders at @launch_house who helped me clarify my thinking.
Visited the house in Tulum last week and took hours of questions from @seifip, @marcusacarey, @LubaYudasina, @AlexMasmej
Watch @J__Cub, @thatguyBG, @callmehouck, they're up to something big!
Visited the house in Tulum last week and took hours of questions from @seifip, @marcusacarey, @LubaYudasina, @AlexMasmej
Watch @J__Cub, @thatguyBG, @callmehouck, they're up to something big!
15/15 Did I do this whole tweet thread thing correctly?
First one.
Summary:People leverage first, then product (media --> code), then capital.
Are you thinking about all 3?
First one.
Summary:
People leverage first, then product (media --> code), then capital. Are you thinking about all 3?
