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This podcast clip is part of a conversation between Naval Ravikant (@naval) and Babak Nivi (@nivi). Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.
- Accountability is important – it’s how you get credibility, leverage, and equity
- “When you’re negotiating with other people, ultimately if someone else is making a decision about how to compensate you, that decision will be based on how replaceable you are”
- If you have high accountability, that makes you less replaceable (and you’ll likely get more equity)
- Equity holders take on greater risk but in exchange, they get nearly unlimited upside
- Why is their risk so high?
- They’re the last in line to get paid behind people who take a salary and the debt holders who lent money to the company
- Taking accountability for your actions is the same as taking an equity position in all of your work
- “In modern society, the downside risk is not that large….so there’s not really that much to fear in terms of failure. People should be taking on a lot more accountability than they actually are.”
- In a business sense, people generally forgive failures as long as you’re honest and made a high integrity effort
- These days – accountability risk happens more around integrity than it does around economic failure
- As long as you’re honest, you’ll be fine
- Accountability is reputational skin in the game
These notes were edited by RoRoPa Editing Services