From: alexhormozi

The global economy has undergone a significant transformation, moving from a reliance on traditional resources like oil to a new commodity: attention [00:00:12]. While the last century’s wealthiest individuals built their fortunes on energy and oil companies, today’s dominant enterprises are powered by human attention [00:00:14].

Attention as the New Oil

In the current economic landscape, attention is the most valuable and scarce resource [00:01:33]. Every human’s collective 24 hours of open eyes and ears represents the total “pie” of attention that various entities are vying to capture [00:01:00]. This contrasts sharply with the past, where oil tycoons had to physically acquire land and negotiate for resources [00:01:17]. Today, those who create platforms and content effectively “take” attention without traditional haggling, accumulating vast amounts of this digital “real estate” [00:01:24].

The Power of Leverage and Compounding

The ability to generate significant wealth in this new economy is tied to leverage, which is defined as the difference between effort invested and results gained [00:03:26]. People who earn the most money are those with the greatest leverage, maximizing returns on their time [00:03:29]. Compounding is a crucial form of leverage, where initial gains multiply over time [00:03:39].

Naval Ravikant’s four types of leverage:

  1. Labor: Utilizing other people’s time to increase output [00:03:41].
  2. Capital: Investing money, often from others, to generate returns [00:03:47].
  3. Code (Software): Creating a piece of code that can be used by millions with a one-time investment [00:03:54].
  4. Media: Producing content (like a video or podcast) that can be consumed by one person or hundreds of millions, providing significant leverage [00:04:03].

Media-based leverage is particularly potent because it allows for compounding—an audience grows and becomes a persistent source of attention [00:03:34]. This contrasts with traditional businesses that may not have inherent compounding mechanisms [00:04:30].

Real-World Examples of Attention Economy Success

Numerous public figures have effectively converted their attention into substantial wealth:

  • Conor McGregor: His Proper Twelve whiskey deal was valued at $600 million [00:00:00].
  • Dwayne “The Rock” Johnson: His Teremana Tequila is now valued at approximately $4 billion [00:00:04].
  • Kylie Jenner: Became a billionaire at 20, demonstrating the immense power of personal branding and audience engagement and media reach [00:00:07]. She reportedly achieved $200 million per year with a team of only seven people, due to having a compounding leverage vehicle in her business [00:04:19].
  • Huda Beauty: Sold a percentage of her company for $600 million, with the company now valued at over a billion [00:02:41].
  • Mr. Beast: Predicted to become a “sense billionaire” due to his compounding media presence [00:01:10]. An example of his influence is when 10,000 people showed up at a local restaurant he opened [00:06:47].

Embracing Visibility for Impact

Initially, some entrepreneurs prefer to be “rich and unknown,” focusing on behind-the-scenes business operations [00:01:54]. However, the success of figures like Kylie Jenner prompted a shift in perspective, revealing that personal brand and media presence were critical for unparalleled scale [00:02:00].

While fame can bring challenges like increased public scrutiny and “weirdos,” the potential for impact often outweighs these concerns [00:05:25]. The mindset shifted from viewing content creation as a waste of time to seeing it as the input that generates an audience—the true compounding output [00:06:31].

Keys to Monetizing Attention

For individuals and brands to effectively translate attention into wealth, several principles are crucial:

  • Long-Term Building: Successful figures like The Rock spent decades building their brand and amassing attention before monetizing it [00:07:33]. Patience and a long “runway” allow for greater leverage [00:08:04].
  • Giving Before Asking: These individuals consistently provide value to their audience before asking for a purchase [00:07:59].
  • On-Brand Monetization: Products and services offered must align with the existing brand and audience interests. The Rock’s partnership with Under Armor makes sense due to his fitness brand [00:08:07].
  • Status Transfer: Celebrities lend their status to brands through endorsements. People buy these brands to associate themselves with the aspirations and qualities embodied by the celebrity [00:08:30]. Examples include Kim Kardashian with Dolce & Gabbana and LeBron James with Nike [00:08:35].
  • Cross-Pollination of Interests: Individuals who can go deep on multiple, seemingly disparate interests (e.g., Joe Rogan’s involvement in UFC, comedy, biohacking, and UFOs) can capture larger, compounding audiences from diverse segments [00:09:17].

The Future of the Attention Economy

The entrepreneurship landscape continues to shift, with media becoming increasingly valuable and expensive [00:10:05]. Advertising and content creation costs are rising, and audiences are becoming more fragmented across platforms [00:10:08]. This means the present is the optimal time to begin building an audience [00:10:17].

The next generation of “sense billionaires” will be those capable of three things:

  1. Capture attention [00:10:24].
  2. Hold attention [00:10:26].
  3. Multiply attention [00:10:26].