My skin in the game

Consultant's get paid well, but the work is boring an unfulfilling.

During a talk at MIT, Steve Jobs told the consultants in the room to consider making something real. Consultants are paid to give advice. And if that advice is wrong, they still get paid. So they have no skin in the game.

Nassim Taleb wrote of Hammurabi's law, whereby architects who built houses that later collapsed and killed its residents, were put to death.

It's barbaric but, in medieval context, it's fair. Under Hammurabi's law, consultants who give advice to a company that bankrupts the company should be punished appropriately.

Never take advice from someone who makes a living giving advice, unless there is a penalty for them being wrong.

Consulting = high priced advice giving. That sort of work doesn't require any risk. And work without an element of risk is boring. It means you don't capitalise from the upside and you aren't punished from the downside.

In contrast, building a startup from the ground up (as we're doing now) means taking real risk. It requires earning very little in the short to medium term, for the chance at a massive payout later. It means battling with the very real chance of failure on a daily basis.

It's also exciting, thrilling and life giving.

For me, it's all about having skin in the game.

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