The Creator Economy vs. the Power Law

Let's play a (squid) game of best-case scenario/worst-case scenario. Let's say you study a new subject up until the point that you feel the diminishing returns were no longer worth your effort. So like a one-trick pony, you create something using your limited knowledge and put it on the market, ready for sale.

The best-case scenario is you've made a lot of money with a little effort. The worst-case scenario is you made nothing but you also lost only a bit of your time. That's actually a decent outcome. At least you validated your efforts quickly by shipping early.

Now, let's say you put yourself in a position where the best-case scenario is you live to see another day and maybe make a bit of money on the side. The worst-case scenario is you get a criminal record and go to prison for a bit. All of a sudden, you feel under-prepared for the situation using the limited knowledge you acquired. That's a classic case of being over-leveraged.

I once knew a successful investor. The way he made successful trades was through thorough investigation and careful decision making. He wasn't a workaholic, but you could describe him as assiduous. He would never slack on his duties, and then tell himself, "the money will come". I think no one with a proven track record would say that, unless he's enslaved to some ponzi scheme.

You see, restricting your studies by the power law means a little bit of knowledge is a dangerous thing. This is especially true if you're prone to risk-taking behavior. But even as I say this, I fully understand, the crucial pattern I've seen truly successful people apply will go in one ear and out the other.

Essentially, by forming this group of get-rich-quick community, you've filtered for peers who fail to understand the consequences of their actions, even as the evidence is piling up around them.

Did you know that as the Titanic was sinking, some of the passengers wouldn't accept the facts as they appeared before them?