After starting to follow Naval, the idea of leverage has been a strong idea that has resonated with me. Leverage definition is the exertion of force by means of a lever or an object used in the manner of a lever. I like the verb as opposed to the noun, use (something) to maximum advantage. Given that advantage, would you not want to be using leverage at all times? Using anything to maximum advantage. The image I get in my mind is the use of a lever moving a rock. What are the real-life applications of leverage and how can we use it?
Naval talks about the use of leverage as building something once for the use multiple times by other people. The main concept he focuses around is building digital tools, focusing on code, on things that can be reproduced with no marginal cost of replication. These are things like programs but also apply to content - websites, writing, podcasts, etc. If someone could focus their efforts on producing content that stood the test of time, ideally you could be producing things that theoretically could be used continuously forever. That is powerful.
I'm sold on this as a way of hopefully making a living someday. The more that you can produce and sell that can be sold multiple times, the more income streams and theoretically more income you can make. This is due to the detachment of your time and work. Work on something for as long as it takes, a project maybe lasting a week, to a month maybe several. But once that's complete, you're done with it. This is much different than a traditional job. If you could make this your job, it's a sum of thousands of small iterations in one area or on one idea. In a traditional job, your time is sold to continue to work towards some bigger overaching goal that likely isn't your goal anyway. It's your employers. Why work towards furthering someone else's goals, not your own?
Your employer is using "people leverage" by hiring you and others to do a job, but we have the ability to do the same. The internet is enabling us to have leverage in many different ways. We can hire people we don't know to do jobs. We can create combinations of words that have duration or can be used multiple times. This comes in the form of writing, video recordings, and code. We can use financial leverage over the internet by investing in lasting businesses. These are the ones I can think of right now but later I need to work on a master list of uses of leverage.
Utilizing high leverage items amplifies our work and provides greater outcomes. That isn't to diminish the work that should be done - still work hard. It's almost as if the work goes further or creates a bigger response, just in the same way a pulley enables higher mechanical advantage.
> Produce things with no marginal cost of replication - writing, videos, code
> Deliver your production through high impact mediums - more eyes, same effort
> Put capital to work in projects/investments that create money