What is the Inverse Entrepreneur Effect?

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Marketing, Business

4.6 • 1.4K Ratings

🗓️ 8 August 2023

⏱️ 6 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 Learn more about your ad choices. Visit megaphone.fm/adchoices See omnystudio.com/listener for privacy information.

Transcript

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0:00.0	We're going to talk about what the inverse entrepreneur effect means.
0:03.6	And this is a new concept, and I saw a creator channel talking about this,
0:07.4	but if you think about business in the old days, business was like a pyramid going up, right?
0:12.0	You build the foundation of the business and you add more and more people,
0:16.4	and then at the top of the pyramid or the hierarchy you can say is the CEO, right? But now that
0:21.5	pyramid's actually been flipped around where let's say we talk a lot about creators
0:25.4	Emma Chamberlain or Logan Paul or Mr Beast right it's actually inverse pyramid now where the creators at the very bottom
0:31.7	And then he start to add resources on top of it,
0:34.0	but everything relies on the creator.
0:35.7	And so if the company, the creator gets sick or like, you know, God forbid they get injured or something,
0:41.8	everything kind of like crumbles, right?
0:43.6	And so that's kind of the trouble with this new creator economy,
0:46.9	this new inverse entrepreneur effect that we're seeing come into play.
0:50.4	Pretty much what you're saying is the companies are becoming reliant on the brands.
0:54.4	Correct. Like if it's a Tony Robbins, hopefully it lives forever but people usually don't live forever.
1:00.3	I haven't met anyone who has yet. But with Tony Robbins if something happened to him and God forbid,
1:06.0	there goes a business, right?
1:08.0	In essence, same with LeBron James or Neil Patel or whoever it may be.
1:12.0	Now you could end up, we need James or Neil Patel or whoever it may be.
1:12.6	Now you could end up winning yourself away,
1:16.0	like Ogilvy ran the ad agency Ogilvy
1:19.2	and David Ogilvy is no longer around,
	...

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