The Formula Nobody Teaches
I've spent years reading books about entrepreneurship, finance, and mindset. Books by Naval, Munger, Howard Marks. All valuable. But there's a formula that appears over and over again, and most people never see it clearly:
Wealth = People Helped × Depth of Help
It's not an exact mathematical equation. It's a mental model. And it's brutally simple.
But here's what's interesting: when you start seeing the world through this lens, your thinking about money, business, and your career changes completely.
Why This Formula Is More Powerful Than Working "Hard"
Let me be honest. For years, I believed wealth came from working more hours, having better skills, or being smarter than everyone else.
Wrong.
Wealth comes from solving problems for many people. Or solving one very deep problem for some people.
Look at any billionaire you respect:
- **Jeff Bezos**: Helped millions of people buy things without leaving home (medium depth, massive scale).
- **Steve Jobs**: Helped millions have technology that was intuitive and beautiful (medium-high depth, massive scale).
- **A specialist surgeon**: Helps fewer people, but the depth of help is extremely high (saves lives).
The combination is what matters.
A freelancer selling their time: few people helped, medium depth. That's why the income ceiling is low.
An entrepreneur creating a product used by millions: many people helped, variable depth. That's why the potential is unlimited.
The Mental Shift You Need
This is where most entrepreneurs get it wrong.
They think in terms of money first. "How much can I charge?"
But if you think through the effectiveness formula, the right question is: "How many people can I help? How deeply?"
Money is the consequence. Not the goal.
This is why scalable businesses work. Not because the founder is "greedy" (as some think). But because the founder is obsessed with solving a problem for the maximum number of people possible.
When I worked as a freelance developer, I earned what I charged per hour. Period. My wealth was limited to my time.
When I started building products (first small, now larger), the model changed. A product can help 10 people or 10,000. The effort is similar. The reward is completely different.
This is why Naval says specific knowledge and leverage are the formula for wealth. Leverage is exactly that: helping more people without multiplying your effort proportionally.
Two Different Strategies, Both Valid
Now. Not everyone wants to be a billionaire. And that's fine.
The formula works both ways:
Strategy 1: Massive scale, medium depth
You help many people with a solution that's "good enough." Think Amazon, Netflix, Spotify. The product isn't perfect for each person. But it's excellent for millions.
This strategy requires:
- Thinking in systems and processes
- Obsession with efficiency
- Ability to attract talent and capital
Strategy 2: Small scale, extreme depth
You help few people, but extraordinarily. Think of an elite consultant, a specialist doctor, an executive coach. Your client pays a lot because the transformation is deep.
This strategy requires:
- Real expertise
- Personal relationships
- Ability to create measurable results
Both generate wealth. The difference is scale and what kind of person you are.
I personally try to combine both. I build products that help many people (scale). But I also do consulting and teaching for some clients where depth is high.
The Part Books Don't Tell You
Here comes the uncomfortable part.
To scale, you need to be useful to people who don't know you. People who don't love you. People who are going to criticize you.
This is why many entrepreneurs fail. Not because the idea is bad. But because they can't tolerate their product helping 100,000 people but displeasing 1,000.
You have to separate your ego from your impact.
You have to be willing to have people criticize you, say your solution is "too simple" or "not professional enough." But if it helps people, that's what matters.
This is why the mindset of "shipping fast" and "iterating in public" is so powerful. You don't wait for perfection. You launch something that helps someone. Then you improve it based on real feedback.
How to Apply This Formula Today
You don't need to be a billionaire to use this mental model.
If you're an employee: Think about how you can help more people in your role. Not just do your job. But multiply your impact. That's what makes you valuable and what eventually gives you options.
If you're a freelancer: Think about how to convert your service into a product. Are there problems you solve over and over? Can you package them so they help more people without you having to be present?
If you're an entrepreneur: The question isn't "How much money can I make?" It's "How many people can I help? How deeply?" Money comes after.
The Book You Should Read
The Law of Effection isn't a specific book. It's a concept that appears in multiple places:
- In "The Millionaire Fastlane" by MJ DeMarco (the concept of "changing lives" as a success metric)
- In Naval Ravikant's writings on wealth
- In "Business Adventures" by John Brooks (how companies that grow are those solving real problems)
But what matters isn't the book. It's that you understand the formula.
Wealth = People Helped × Depth of Help.
Everything else is details.
Takeaway
If you want to build wealth (of any kind), stop thinking about money.
Think about: How many people can I help? How deeply?
The answer to that question will determine your financial life more than anything else.
And that's what real books should teach.
