From: alexhormozi
The economic landscape has shifted dramatically, moving from a focus on energy and power to attention as the new “oil” for wealth creation [00:00:14]. In the last century, the wealthiest individuals and largest companies were built on oil [00:00:24]. Today, four out of the top five biggest companies in the world are built on “attention,” which is the “new oil” [00:00:33]. The collective eyes and ears of humanity, 24 hours a day, represent this new “pie” that companies are fighting to capture [00:01:03]. Just as oil was once a scarce resource, attention has become the scarce resource of the modern era [00:01:36].
The Power of Attention
High-profile individuals and celebrities have demonstrated the immense wealth-generating potential of captured attention:
- Conor McGregor’s Proper Twelve whiskey deal was valued at $600 million [00:00:00].
- The Rock’s Teremana Tequila is now valued at approximately $4 billion [00:00:05].
- Kylie Jenner became a Forbes-listed billionaire at age 20 [00:00:10].
- Mr. Beast is projected to become a centibillionaire [00:01:10].
These examples highlight how individuals can leverage their audience to create significant wealth, often with smaller teams [00:04:18]. The value lies in the compounding effect of an audience, which acts as a consistent source of “pumped attention” [00:06:37]. For instance, Mr. Beast attracted 10,000 people to a local restaurant opening, showcasing the direct impact of his audience [00:06:53].
Understanding Leverage
Leverage is defined as the difference between what you put in and what you get out [00:03:26]. Those who earn the most money possess the most leverage, as everyone has the same amount of time, but not the same return on that time [00:03:33].
Types of Leverage
Inspired by Naval Ravikant’s Almanac, the speaker identifies four primary types of leverage:
- Labor: Getting other people to do tasks for you, freeing up your time and increasing output [00:03:45].
- Capital: Investing money provided by others to generate returns [00:03:51].
- Code: Creating software that, once built, can be used by millions, offering infinite returns on a one-time investment [00:04:01].
- Media: Producing content (like a video) that, once created, can be consumed by millions or even hundreds of millions of people [00:04:09].
Media and code are particularly powerful because they allow for compounding, meaning a single investment of effort can multiply returns over time [00:03:37].
The Power of Compounding
Compounding is a crucial form of leverage [00:03:41]. It’s about an investment that multiplies itself over and over again [00:04:43]. For example, Warren Buffett’s success with Berkshire Hathaway is attributed to the compounding of money itself [00:04:54].
The speaker initially disregarded content creation, preferring to be “rich and unknown” [00:01:56]. However, seeing the success of figures like Kylie Jenner, Huda Beauty, Conor McGregor, and The Rock, who all leveraged their media presence for massive deals, caused a significant belief shift [00:02:55]. He realized that his business lacked a compounding vehicle [00:04:33].
“I thought if I got one more person who’s gonna see this short or see this long or see this post or see this tweet or see this whatever that was the point.” [00:07:25]
A pivotal moment occurred during a conversation with Dean Graziosi, who challenged the speaker’s reluctance to engage with public exposure [00:05:40]. Graziosi stated that dealing with “weirdos” or “a couple weird letters” was a small price to pay for the impact he wanted to have [00:05:52]. This shifted the speaker’s perspective, making him realize that if he truly wanted to make business education available to everyone, his actions needed to align with that goal [00:06:05]. He concluded that content is the input, and the output is the audience, which compounds and sticks, gathering the scarce resource of attention [00:06:44].
Monetizing Attention Effectively
Successful figures convert attention into money by:
- Long-Term Brand Building: They spend significant time building and amassing attention without immediately monetizing it [00:07:41]. The Rock, for example, built his brand for 20 years before signing major deals with Under Armour, Teremana, and ZOA [00:07:50]. The longer one can wait, the bigger the eventual monetization can be [00:08:06].
- On-Brand Monetization: The products or services chosen for monetization are “on brand” and resonate with their audience [00:08:13]. The Rock’s partnership with Under Armour aligns perfectly with his fitness-focused brand [00:08:27].
- Endorsement and Association: Celebrities lend their status to brands, allowing consumers to associate the brand with the celebrity’s desired qualities [00:08:50]. For instance, Nike signed LeBron James to associate their brand with victory and iconic status [00:09:08]. Consumers then buy the brand to gain a perceived association with that status or aspiration [00:09:14].
- Multi-Dimensional Engagement: Mega-stars like Joe Rogan go deep on multiple, seemingly different, interests (UFC, comedy, fitness, biohacking, UFOs) [00:09:31]. This “cross-pollination” captures broader audiences and compounds their reach even faster [00:09:42].
The Future of Wealth Creation
The fundamental game of wealth creation has changed [00:10:00]. While past generations built wealth on resources like oil, the new generation will build on attention [00:10:05]. Media will continue to become more expensive and fragmented, making the audience increasingly valuable [00:10:17].
The future “centibillionaires” will be those who can perform three key actions with attention:
- Capture [00:10:25]
- Hold [00:10:26]
- Multiply attention [00:10:27].