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Patrick Delaney's avatar

This article applies very much to writing Substack posts and newsletters.

That being said, status bucks may be converted over into real bucks. For example, "I have a newsletter about *hot technology topic* with many subscribers, could be put on a resume, which may or may not help one's chances at a job which pays real bucks.

On the other hand, this strategy must have some level of precision to be effective, and so for some roles that pay status earlier in life, one may later in life realize that...it really would have been better to have been paid in real bucks rather than status bucks which are not convertible into real bucks, much like buying a call on a stock that never went up above expectations.

E.g., had I spent less time authoring a newsletter on this particular hot topic, and more time contracting for straight cash, and invested that straight cash into an interest-paying account, my balance today would be X. Whereas the increased income I am getting from having landed a job or customer through that newsletter only pays Y above what I had expected, and X >> Y.

Buying status bucks through paid advertising, for example Google ads pointing to a Github repo, are usually much more expensive in terms of actual bucks spent for getting eyes and attention than is earning and spending status bucks, which may be a sweat equity exercise. Online advertising is super expensive, so if you introduce a variable W which represents, "the monetary spend to get a concept off the ground," then Y might again be worth much more than X, because it helps you not have to spend W. If your status bucks exercise is part of a holistic overall strategy (assuming it's effective), it starts to become more valuable again.

The older you get, the less valuable status bucks become, because you only have so much time left in life to attempt to convert those status bucks over to real bucks. Earning status bucks takes a lot of work, so presumably at some point, one may make the decision to, "spend more time with grandchildren," or, "go on more walks on the beach," rather than write to an audience, create videos and creative content, etc., unless you REALLY fundamentally enjoy the exercise.

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