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You don't get rich by "providing value."
My friend “Danny Miranda” has a podcast that is growing rapidly.
Last week, Danny released a clip where he asked one of his guests “how do you get rich?” The guest replied instantly with two words. The words were, “provide value.”
First off, I love Danny. He’s got a great heart. He even came on my podcast recently, so this isn’t a dig at Danny or his show. But I feel the need to correct this common misunderstanding that has been permeating in entrepreneurial circles the last few years.
You don’t get rich by providing value, you get rich by creating leverage.
The value you provide has nothing to do with the amount of money you make.
The local meat market that I go to every week provides insane amounts of value in my life. Every week, I get my organic meats, organ meats, fresh vegetables, and delicious perogies. This food is highly nutritious and flavorful. The value it provides in my life can not be underestimated. My heath is a top priority for me and the food I buy every Saturday accounts for a large percentage of my health.
So do you think the local farmers at the farmers market are rich? Probably not.
It’s not to say they don’t live a great abundant life, but they’re probably not rich.
You know who is rich? The Purdue family.
The Purdue family has a net worth of six billion dollars.
Now you tell me, which is more “valuable.” Highly nutritious farm raised chickens, beef, and livers? Or Purdue chicken that is pumped with antibiotics?
So what does the Purdue family have that the local farmers don’t have?
They have leverage. They have a system that allows them to mass produce their product without increasing the cost of replication. That’s why they’re growth is asymmetric.
This is important. Entrepreneurs MUST understand the difference between value and leverage.
You can live a great life by providing value, but if you want to get rich, you must generate leverage.
Figure out how.