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 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.

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