The Relationship Between Fame & Money

Nick Kozmin

Transcript

Alrighty. So in this video, I'm going to talk about the inverted relationship between fame and money. Now, where did this topic come from? I was talking to one of my clients. He's masked my client. He has hundreds of thousands of subscribers. He has hundreds of thousands of followers. He has a lot of attention and we were comparing followings. Okay. And I have a thousand YouTube subscribers. I don't have many Instagram followers and all that stuff, but we do a similar revenue number and pretty similar profit numbers. Why is this happening? What's actually going on. And this led me to like unpack this inverter relationship between fame and profit. So I think Elon Musk said this, the amount of money you make is dependent on the complexity of the problem and the level of pain relative to the customer of that problem. If you solve the heck out of it, you're going to get paid and that's going to turn out in profit.

Now, on the other hand, we have famous what's in what's fame. It's a function of impression. So how many times somebody sees you and correlates like a positive emotion to that message. So it's the number of times they see the message that the potency of that message and it's a function of frequency and, uh, and value. How do you solve complex problems? Well, one with domain expertise is going to need to spend a lot of time, money and energy in that direction, solving a problem. And how does one get famous? Well, someone with domain expertise is going to have to spend time, money, and energy, trying to get impressions and trying to create value with. So both activities required, time, money, and energy, which means they compete with each other. So at the limit, the best products are not, uh, built by someone who is super famous in the content world.

The most famous people in the content world don't necessarily have the best products. Cause if you just explore the limits and you can look where the time and money and energy is going, it goes down different paths. Well, what about actors and singers and people who are accumulating profit and famous, it's a special case because the product is the marketing. So there's an overlap by focusing on the product and making their stuff really, really awesome. They're simultaneously doing content and marketing because the product is like a movie or a song. The way that someone experiences value is by consuming the content. So there's that overlap. And as a result, it's really good. They get paid and, uh, they get famous. So what does this mean? Well, if the person doing the podcast, the content or whatever is not an actor or a singer, then you can use this as a cue to kind of see how much energy they're focusing on their product.

How much time they're focusing on the product shows up in my industry a lot. If someone's doing a ton of podcast content, um, they're doing a lot of this noisy stuff. Well, we've seen that if you look under the hood, usually the products are not the best in market, and there's an opening for someone to create a better product. On the other hand, if you find a business that has a few pieces of content, that's really, really, really well done, it's likely that they know what they're doing and their product or their solution is, uh, is pretty useful. Okay. So what does this mean for you? Well, uh, where should you focus? Well, it depends on your skillset. If you are, you have the engineering abilities and you are able to build and solve problems. You're probably gonna get a high return building and in solving complex solutions for customers, if you don't have those skills, but the camera loves you and you know, you can get a lot of attention, then it makes sense to focus your energy on that, uh, in that direction, and then sell other people's products as an affiliate or as a channel, or you can sell advertising.

So that's kind of how it works. And that's at least my interpretation of why I have a thousand subscribers and make 10 million bucks. And why one of my clients has hundreds of thousands and makes 10 million bucks, hopefully that information was useful. And we'll see you in the next video.

 

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