What is the Inverse Entrepreneur Effect? #2529

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.6 • 1.3K Ratings

🗓️ 8 August 2023

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode #2529, we take a look at a new concept known as the inverse entrepreneur effect. This concept of business implies that your regular hierarchical pyramid is flipped upside-down. With the creator or brand on the bottom, they build upward with positions and people they need as the business grows. Join us as we take a look at the trouble with this new creator economy and explore the idea of reversing the upside-down pyramid to prevent your business from becoming reliant on one person, negating the Key Man Risk. For more insights and practical takeaways, tune in now. TIME-STAMPED SHOW NOTES: [00:00] Today’s topic: What is the Inverse Entrepreneur Effect? [00:05] A new concept where the pyramid is flipped upside-down. [00:40] The trouble with the creator economy. [01:50] A good example of making everything not reliant on the brand/creator. [02:28] We talk about ‘The Lindy Effect.’ [03:00] Reversing your company to a right-side-up pyramid. [04:00] How to prevent your business from becoming/being reliant on one person. [04:40] A quick look at what Logan Paul is doing. [05:11] ‘Key Man Risk’ and what it means in business. [05:24] That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Links Mentioned in Today’s Episode: Don’t forget to help us grow by subscribing and liking on YouTube! LVMH with Bernard Arnault. Logan Paul and Prime. Register for the Leveling Up Founders Event here! Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency Twitter @neilpatel Twitter @ericosiu

Transcript

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0:00.0	We're going to talk about what the inverse entrepreneur effect means, and this is a new concept,
0:05.0	and I saw a creator channel talking about this, but if you think about business in the old days,
0:10.0	business was like a pyramid going up, right? You build the foundation of the business and you add
0:14.7	more and more people, more and more people, and then at the top of the pyramid or the hierarchy,
0:18.5	you can say, is the CEO, right? But now that pyramid's actually been flipped around, where let's say
0:24.3	we talk a lot about creators like Emma Chamberlain or Logan Paul or Mr. Beast, right? It's actually
0:29.0	inverse pyramid now, where the creators at the very bottom, and then they start to add resources
0:33.0	on top of it, but everything relies on the creator. And so if the company, if the creator gets sick or like,
0:38.8	you know, it's gone for a bit, they get injured or something, everything kind of like crumbles,
0:43.0	right? And so that's kind of the trouble with this new creator economy, this new inverse entrepreneur
0:48.3	effect that we're seeing come into play. Pretty much what you're saying is the companies are becoming
0:53.2	reliant on the brands. Correct. Like if it's a Tony Robbins, hopefully it lives forever, but people
0:59.0	usually don't live forever. I haven't met anyone who has yet. But with Tony Robbins, if something
1:04.2	happened to him and God forbid, there goes a business, right? In essence, same way LeBron James or
1:10.4	Neil Patel or whoever it may be. Now you could end up winning yourself away like Ogil V ran the
1:17.6	ad agency Ogil V and David Ogil V is no longer around. But yeah, the agency is still kicking and
1:24.1	growing. But same with you and me, right? And I'm assuming the similar goes with Tony Robbins and
1:29.6	other people, but Tony has to go on stage. Eventually over time, you figure out how to get your
1:34.8	business not to be as reliant on you. It's still to some extent reliant on you, but you can
1:39.5	reduce how reliant it is on you overall. Yeah, I'd be curious to actually see a case study on LVMH
1:46.0	with Bernard Arno. And those are all people that founded those companies in the beginning. And those
1:51.0	are all names now, right? But nobody really knows who those people are. But point being, if you're
	...

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