From: alexhormozi
The landscape of wealth creation has shifted from tangible resources like oil, which defined the last century, to the intangible yet powerful force of attention [00:00:14]. Today, attention is considered the “new oil” and the most valuable scarce resource [00:01:33]. Accumulating wealth in this new economy heavily relies on understanding and applying the principles of compounding and patience.
Attention as the New Oil
The current economy is driven by the ability to capture, hold, and multiply attention [00:10:25]. Just as the wealthiest individuals of the last century built their fortunes on oil, today’s biggest companies and billionaires, like Kylie Jenner, The Rock, and Mr. Beast, are built on attention [00:00:19]. The global collective of human eyes and ears, available 24 hours a day, represents the “pie” that companies and individuals are fighting to capture [00:01:00].
The Power of Compounding
Compounding is a fundamental aspect of wealth creation, representing the difference between what you invest and what you receive in return [00:03:27]. It is described as a form of leverage, where an initial investment, whether in capital or time, continues to multiply itself over time [00:03:34].
Naval Ravikant’s “Almanac” highlights four types of leverage, two of which — code (software) and media — allow for infinite output from a one-time investment [00:03:25].
- Code: Creating a piece of software that millions can use exemplifies leverage, yielding vast returns from a single investment [00:03:55].
- Media: Similarly, a single piece of media, such as a video, can be viewed by millions or hundreds of millions, demonstrating significant leverage [00:04:03].
The speaker initially focused on traditional business models like Gym Launch and Prestige Labs, aiming to be “rich and unknown” [00:01:48]. However, witnessing the immense success of figures like Kylie Jenner, who became a billionaire at 20 with a small team, prompted a significant “belief shift” [00:02:03]. This success was attributed to a “compounding leverage vehicle” built into her business [00:04:26].
Realizing that his own businesses lacked a compounding mechanism, the speaker sought to incorporate a “compounding vehicle” into future ventures – something that multiplies itself repeatedly [00:04:30]. This concept mirrors how Warren Buffett built Berkshire Hathaway, where money itself compounds over a long time horizon [00:04:43].
Ultimately, the speaker realized that “content is not the output, it’s the input. The output is the audience, and the audience is what compounds” [00:06:31]. The audience acts as a reservoir of attention that can be repeatedly engaged [00:06:42]. For example, Mr. Beast’s ability to draw 10,000 people to a local restaurant launch at age 24 is a testament to the compounding power of media and audience [00:06:47]. The prediction is that Mr. Beast will become a “centibillionaire” due to the power of media compounding [00:06:58].
The Virtue of Patience
Accumulating wealth through attention and media leverage also requires significant patience [00:07:55].
- Building a Brand Over Time: Celebrities like The Rock spent decades building their personal brands before monetizing them [00:07:43]. The Rock meticulously built his brand for 20 years before signing deals with Under Armour or launching products like Teremana Tequila and ZOA [00:07:48]. This demonstrates that a “long runway” allows for a “bigger plane to take off” [00:08:04].
- Giving Before Asking: Successful figures in the attention economy consistently give value to their audience without immediate expectation of return [00:07:59]. This long-term approach allows for a much larger “ask” or monetization opportunity later [00:08:02].
- Staying On-Brand: When monetization occurs, it’s crucial that the product or service aligns with the established brand [00:08:07]. The Rock’s partnership with Under Armour makes sense because fitness is a core part of his brand [00:08:15]. Similarly, celebrities like Kim Kardashian endorse brands like Dolce & Gabbana, allowing consumers to associate themselves with the aspirational status of the celebrity by purchasing the brand’s products [00:08:31].
- Cross-Pollination and Deep Engagement: Mega stars like Joe Rogan deepen their audience engagement by exploring multiple dimensions of interest, such as UFC, comedy, fitness, and even niche topics like aliens [00:09:18]. This “cross-pollination” compounds the audience even faster [00:09:37].
The speaker initially struggled with the idea of creating short-form content that might vanish, viewing it as a waste of time [00:06:09]. However, a conversation with Dean Graziosi shifted his perspective, realizing that the minor inconveniences of fame are a small price to pay for the desired impact [00:05:31]. This highlighted the necessity of aligning actions with one’s goals, particularly if the goal is to make business education widely available [00:06:00].
Conclusion
The fundamental shift in wealth creation means that those who can effectively “capture, hold, and multiply attention” will be the “new centibillionaires” [00:10:21]. This requires not only understanding the leverage of media and audience compounding, but also the patience to build a valuable audience over time [00:09:47]. Media will become increasingly expensive, making it critical to start building an audience now [00:10:06]. This holistic approach to wealth building, combining understanding of investments in attention and the leverage of time, is key to future success.