Old and New ways of Thinking about Value

Old: Many things are scarce, scarcity has value. The owner of scarce things can leveraging that scarcity – making money with these commodities.

New: Scarcity has value, but so does abundance. In other words there are multiple ways to leverage a commodity – instead of making money with it, you can make money because of it.

Giving away your music for free allows you to build up you profile and acquire fans faster, which means commanding higher prices to perform at festivals, and being able to pack out larger venues for your gigs. You make money because of the abundance of your music, combined with the natural scarcity of you.

And that’s how most DJs and some artists (notably Radiohead and Coldplay) make money because of their music, not with it.

Similarly, a friend of mine got hired six months ago by the leading FinTech VC because the founder came across his blog. he got hired because of the commodity he gave out for free.

Because, not with.

Lesson: Change = opportunity (if you can figure out how). It’s only ‘the end of the world’ for those that refuse to adapt.

Adventures with Because Effects

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