Income Stacking & Attention Arbitrage
Do you have enough sources to weather the storm? Turn eyeballs into $.
Centralized vs De-Centralized Income Streams.
Do you have ‘em, how do you get ‘em? What do I mean? Does it matter?
An infographic is worth a thousand tweets.
So you see centralized = F*d. Decentralized = Financed.
If we want to be technical that is.
Centralized income truly defined is you have one income stream, or one single point of failure. Such as if you work in a job and lose it like the 1-3 Americans who have during Covid-19. Or in the state of California, if you work for a delivery or a rideshare company, and next week, the regulators decide to mandate a move from contractors to employees and - put everyone out of work. High five Washington.
Even my friends who make millions in lets say hedge fund or private equity land do not have one income stream. They know all too well how quickly the market pivots and they can become irrelevant.
Decentralized income means you are like a computer network, if a hacker gets to your one income stream (or a politician decides to deem you non-essential), you just revert to one of your backup servers. You are diversified in your income.
Most of us by now have heard the term Horizontal Income Streams or Passive Income. I like the term horizontal income because let’s be honest, there is no such as TRULY no work money. Passive income ain’t so passive. That said, it can be upfront work for continual pay. An asset you are generating income from on a reoccurring basis.
My term there is CREATE ONCE, SELL CONTINUOUSLY.
If your money isn’t making money for you when you are sleeping, then you are doing something wrong. - Some Guy Who Knows A Thing or Two About $
The problem has always been:
How do you make sustainable, meaningful income without side hustling yourself to death.
But today I thought we’d focus on another income area to generate from entirely.
Attention Arbitrage. While the idea of a generation of selfies leaves me feeling like I need hand sanitizer, it’s proven true and it’s one of the lowest barrier to entry businesses to build. So off into the world of the Kardashians. *BTW - If you call them America’s family we probably won’t be buds.*
I call this the: “How Kylie Got $600M for 51% of an Glorified Contract Makeup Brand”
These days our most valuable commodity is attention.
The new economy today is all around monetizing our eyeballs. Think about that for a second. Kylie became the youngest billionaire by building an empire worth $1.2B w/ her instagram posts. She maximized your attention… into her bank account.
The company who purchased her stake (Coty) must have been doing a few things right in the eyes of the market as their stock bounced back up to almost all time highs on the announcement. Don’t go rushing to buy now though, (or maybe do I don’t know anything about these guys) they’re down to around $4 a share now.
THAT right there is why I believe it’s critical to have some type of personal brand. Why? Your ability to monetize it becomes a flywheel. Let me tell you, if you don’t have one. You need a flywheel, first step towards attention arbitrage.
What is a Flywheel? : a continuously improving set of repeatable, tactical actions that scale with decreasing friction.
This is an example of a marketing flywheel (ie all the actions are how to get more attention) but flywheels are how all businesses that are successful work:
Create a consistently-repeatable tactic/product (or group of tactics)
Build a system for reaching a larger audience or decreasing the cost to reach each potential customer
Achieve scalability: each successive action reduces friction in the system
Meaning you work less for more out of it each time. Sounds nice.
Let me give you my business and personal brand Fly Wheel.
Here is my marketing flywheel. It shows how each avenue we use to gain someones attention leads to them entering our ecosystem and eventual $$. As one channel grows, the others grow through cross-pollination and it becomes a boulder pushing downhill. We could probably even take this one step further to the in person meetings and outbound sales we utilize in the world of finance.
Once you have a flywheel built yourself of different ways to engage humans, the next step is a monetization flywheel. How can you take those you have in your ecosystem and make money alongside them?
Honestly, this one is new for me and it was psychologically hard. I only ever historically made money on investors and deals. Selling products or services to people like me and you felt… spammy to me. Beginning felt like those creeps (ahem Tai Lopez) who try to sell you a dream they still haven’t realized. But then I started treating it like a game. It got fun. Build product, share it, earn from it, and repeat.
And get over my damn self that making money on z interwebs is ok.
So these tools/products/services are how I diversify my income streams, they are how we gain clients across the businesses, and they are how we keep relevancy.
What’s your next step?
Create your own flywheel. Answer these questions:
Do you have ways to gain attention and grow viewership?
Do you have ways your viewers can reward your content with purchases?
If not go build yourself a flywheel.
Start with an email list. Most powerful and algorithms can’t f you.
Add LinkedIn on a subject you’re knowledgable on(where people know your credibility and it’s easiest platform to grow IMHO).
Build up some credibility (90 days of giving before you ask).
After 90 days throw up some e-products, affiliate deals and start building a business around what interests you.
AND THEN… think about making it lean. Check this out. Blew my mind.
Lean Operations: Kylie must have read the Lean Startup…
Because the beautiful thing about this cosmetics business of hers is that it basically runs itself.
She had 3 full time employees at the time, now she has just seven full-time and five part-time employees. She outsourced the manufacturing and packaging for her brand to Seed Beauty, the sales to shopify, the makeup production to Spatz Laboratories, and the oversight to her mom and manager for 10% of all sales.
So this company that drives the majority of it’s sales through her social media was all started with $250k and scaled with other peoples employees. Ain’t bad.
And quite honestly, you don’t have to be a famous reality star (how is that even a thing) to do this.
Questions everything (and stack revenue streams),
Follow along for more at: Biz Buying: www.unconventionalacquisitions.com
Btw - I’m just gonna leave this right here for ya.
Cannabis vs the Internet Bubble. This is part of what I saw that got me into this wild industry. It’s certainly what my partners saw who had been in the world of tech a time or two. Want to learn more? www.entourageeffectcapital.com.
This article is presented for informational purposes only, is an opinion, and is not intended to recommend any investment, and is not an offer to sell or the solicitation of an offer to purchase an interest in any current or future investment vehicle managed or sponsored by Entourage Effect Capital, LLC, Codie Ventures LLC, or its affiliates. Any such solicitation of an offer to purchase an interest will be made by a definitive private placement memorandum or other offering document.