Producer vs Consumer

Becoming the "Dangote" of Web3

One of these days, I was sitting on my front porch with these questions in mind:

"How does the CRAZY rich 1% get rich? How does only about 20% of the population control the world's money?"

For 6 weeks, I've been researching and decided to share my findings with you in today's letter.

Buckle up, let's learn:

Production vs Consumption

Do you think being poor is "unfair"?

You don't have to write back what you think but from what I've seen, 99% of poor people think life's unfair and there's nothing they can do about it.

But even in this crazy economy, the rich keep getting rich...

From my rigorous research, here's what makes the difference:

The rich produce

The poor consume

You see?

People become rich because they produce either products, services, or information.

People become poor because all they ever do is consume and never, ever produce.

I read a book by Moore Rob, he said:

"To be wealthy is to give service, to produce; to be poor is to consume; –consuming depreciates."

This concept of "Producer vs Consumer" is particularly relevant in today's world.

I mean, not in the last centuries has it been so important to "produce" and have ready consumers for your product.

The product doesn't have to be cassava or yam brought from the farm and sold into a market.

It can be your content online, or your services or digital products.

The Difference

This concept can be mistaken for something else.

Someone could read the first part of this letter and think, "Oh, consuming is bad," not exactly, but... Let's clear the air

Producers: Individuals or entities that create value by generating content, developing products, offering services, or building communities. They shape trends and industries, literally.

Consumers: Primarily, they engage with the content, products, or services that producers create.

Being a consumer is an important “role” as well.

It's how demand is provided in any market.

But being JUST a consumer puts you at risk of becoming irrelevant.

There has to be a transition into a more active role, the role that makes you a MASSIVE producer.

“Producer vs Consumer” in Web3

In the Web3 space, 3 categories make the most:

- Developers

- Creators

- Innovators

They've the biggest share of the 1 trillion market.

Why?

They craft the infrastructure, applications, and protocols that drive the ecosystem.

Those who merely consume in the web3 space without contributing miss out on CRAZY money-making opportunities.

Although consumers may still benefit from using Web3 services, the real package goes to those who produce.

The Transition

To move from being a mere consumer to a producer in Web3 requires:

- Shift in mindset

- Skill acquisition

- Active participation

I used to be such a huge consumer, without producing as equally. Then the “transition” happened.

I realized I needed to produce more value.

And I've seen the benefit of producing rather than just consuming.

For instance, in this newsletter: 70% of first-time readers give feedback on insane changes it's brought them.

Now, here's a practical guide on how to make that transition:

Step 1: Educate yourself on Web3 concepts

The quickest way to equip yourself with basics like blockchain, smart contracts, and tokenomics is through platforms like YouTube.

Check out YouTube channels like Coin Bureau, Ivan on Tech, and Whiteboard Crypto for free impactful guides.

Secondly, follow key people in the space on different platforms. (I'm starting a series of fundamental educational series on Web3 on my X timeline)

Step 2: Identify your niche

Your foundational knowledge of the space should draw you towards a niche you're most interested in.

You identify your niche by assessing how your skills: like coding, design, or community management can be applied in web3.

The best way to find the perfect niche? Find a problem.

The bigger the problem you can spot in the space, the bigger the reward.

Step 3: Invest in the ecosystem

The greatest way to receive?

It’s to give.

Best way to make money? It’s to invest.

You “put your money where your mouth is”.

You become an efficient consumer to become a good producer.

Imagine this: "Hey Ted, I just tested the XYZ feature on [the platform]. It's great, but I noticed a [ABC] problem. Wanna jump on a call? I've made some solution draft that could increase both volume and users."

It's way better than: "Hey Ted, I'm a [random intro] with 1 million experiences..."

Two things: The person would see you as both high class, interested users and someone who can provide him valuable solutions.

Step 4: Network Actively

"Who you know" is a cheat code.

The world’s political system has shown this.

A simple formula to build a solid network:

- Follow people you resonate with.

- Contribute to them first by providing value.

- Provide more value

- Make the ask (You can check out the full guide to networking with anyone here)

There's so much power in being a producer, rather than just a consumer.

Both sides are needed for economic growth and balance but don't stay on one side of the coin.

That's it.

Hopefully, you grabbed 1, 2 or 10 things.

- Phoenixx

What's happening?

The “Mastering Content Writing” course is launching in September. Pre-order start September 1st (I'll forward more deets soon).