The Naval Podcast – Product and Media are the Leverage of the New Wealth

Check out Naval’s Episode Page & Show Notes

This podcast clip is part of an ongoing conversation between Naval Ravikant and Babak Nivi. Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

  • The most important form of leverage is the idea of products which have no marginal cost of replication (aka product leverage)
    • You can replicate your efforts without having to involve other humans
    • Ex. – A podcast
      • Long ago, to get similar reach, you would have had to give a public lecture
      • 30-40 years ago – you would have had to get on TV
      • But today, thanks to the internet, anyone can launch a podcast
  • Product leverage is how fortunes will be made in the digital age – using things like code or media
  • Combining labor leverage, capital leverage, and product leverage is a magic combination for tech startups (for more on labor and capital leverage, check out these Podcast Notes)
    • You use the minimum, highest output labor – engineers and product developers
    • You add capital which you can use for marketing, advertising, and scaling
    • You then add lots of code, media, and content to get everything out there
  • Product and media leverage are permisionless – they don’t require someone else’s permission for you to use them or succeed
    • For labor leverage – someone has to decide to follow you
    • For capital leverage – someone has to give you money
    • But coding, writing tweets, making podcasts, YouTubing – these are permissionless
  • The robot revolution has already arrived – we just keep them in data centers/servers
    • Think – every great software developer has an army of robots working for him/her at night, while they sleep, after they’ve written the code and they’re just cranking away
    • Robots do web searching for you
    • Robots handle customer service inquiries 
    • Over time, this will progress to autonomous vehicles/planes/trucks
  • Coding is a superpower because it allows you to speak the language of the robots and tell them what to do

These notes were edited by RoRoPa Editing Services

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