The most interesting and the most important form of leverage is this idea of products that have no marginal cost of replication.

This is the new form of leverage. This was only invented in the last few hundred years.

It got started with the printing press. It accelerated broadcast media and now it's really blown up with the internet and with code.

So now you can multiply your efforts without having to involve other humans and without needing money from other humans.

This podcast is a form of leverage. Long ago I would have had to sit in a lecture hall and lecture each of you personally and I would have maybe reached a few hundred people and that would have been that.

30 years ago I would have to be lucky to get on TV which is somebody else's leverage.

They would have distorted the message that would have taken the economics out of it or charged me for it.

They would have muddled the message and I would have been lucky to get that form of leverage.

But today thanks to the internet I can buy a cheap microphone, hook it up to a laptop or an iPad and there you are all listening.

So this newest form of leverage is where all the new fortunes are made.

So all the new billionaires. So the last generation fortunes were made by capital that was the Warren Buffets of the world.

But the new generation fortunes are all made through code or media.

Joe Rogan making 50 to a hundred million bucks a year from his podcast.

Pewdiepie. I don't know how much money he's rolling in but he's bigger than the news right.

The Fortnite players of course Jeff Bezos and Mark Zuckerberg and Larry Page and Sergey Brin and Bill Gates and Steve Jobs.

That is all code based leverage.

Now the beauty is when you combine all of these three.

That's where tech startups really excel.

Where you take just the minimum but highest output labor that you can get which are engineers and designers product developers.

And then you add in capital use that for marketing advertising scaling and you add in lots of code and media and podcasts and content to get it all out there.

That is a magic combination and that's why you see technology startups explode out of nowhere use massive leverage and just make huge outsize returns.

Do you want to talk a little bit about permission versus permission list.

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