What Is the Most Profitable Strategy of All Time?

Listen to Steve read this post below (Bonus garden bird noises in the background!)

Steal Things.

No, I’m not being flippant — that’s how most of the insanely large fortunes have been built through history. By theft I don’t mean breaking into a vault or armed robbery — it’s far more subtle than that… But hear me when I say that stealing is, without question, the most profitable business model in history.

So, what do I mean by stealing?

I mean — taking things which aren’t yours, or anyone’s for that matter. Think appropriation, extraction, control, or the co-opting of someone else’s labor, property, idea or data. If you doubt it, just look at every empire that’s ever existed — both nation state and corporate.

The trick? Extract it before the ‘victims’ realise its value.

From the dawn of commerce, to the dawn of AI, every major fortune has been built on the same foundation: taking something that wasn’t yours, fencing it off, and pretending you created what’s inside the new boundary. Oh, and then charge people for access to it.

Imperialists did it first.

They didn’t create value — they extracted it.

They turned land, minerals, spices and sadly, even people into asset classes. They drew lines on maps and said, this is ours now. They imposed their arrival through the barrel of a gun, military might over less developed, new found colonies.

Then came the industrialists.

The oil oligarchs, the mining magnates, the robber barons. They didn’t invent oil, they dug it up and declared ownership. Whoever gets there first, gets rich — everyone else pays rent forever.

Then came the factories. Cars, steel, rail, assembly lines. They didn’t invent human effort, they just systemised and re-packaged it. They stole independence from the farm and the craftsmen and sold it back as wages. They stole time itself — hours punched on a clock — and offered weekends as consolation.

And here’s the kicker: every new technology creates a new thing to steal.

Data Was the New Oil

Fast forward to the digital era. The oil of our time became data. In 1995 the biggest seven companies in the world were in the energy business. Today the biggest seven companies mine attention. Both cohorts are in the business of extraction.

Big Tech figured out that the most valuable resource on Earth wasn’t underground — it was inside us. Our clicks, likes, faces, voices, connections, our thoughts… our waking hours. (Side note: Netflix CEO Reed Hastings once quipped that their biggest competitor was sleep.)

They harvested it, repackaged it, and sold it back to us as “personalised experiences.”

Facebook didn’t ask for your data. They just took it.

YouTube didn’t license music. They stole it first, scaled the audience, got huge venture funding and then cut deals, with their newfound financial power backed by Google.

Uber didn’t disrupt taxis — it ignored the value of taxi licences that drivers had paid hundreds of thousands for. They broke the law until they got the law changed — assisted by their $13.2 billion in venture funding and political donations.

It’s the same playbook over and over again: move fast, fill the zone, make the theft irreversible.

… Then AI arrived & Stole at Scale

The next great heist wasn’t oil, or factories, or social media. It was knowledge itself.

OpenAI’s ChatGPT was trained on the entire internet — every book, every blog post, every picture and video they could scrape. Whole careers, libraries of art, lifetimes of writing and creative output — downloaded without permission. My three books are even in there.

Early outputs even carried Getty Images’ watermarks, proving where the training data came from. The New York Times is suing them for exactly this — ChatGPT could reproduce entire paywalled articles word for word. Yep, content wasn’t just learned, it was ‘lifted’.

When a human copies your work, we call it plagiarism. When an AI does it at planetary scale, we call it progress.

Enter Sora 2 —

The AI grift is continuing…

OpenAI just released Sora 2, a text-to-video model that can generate astonishingly realistic clips. People, places, characters, especially copyrighted ones… all of it, drawn from the vast ocean of human creativity that was scraped from the web without permission.

And you guessed it, they made it opt-out. Meaning your art, your likeness, your face, your voice can be used unless you explicitly tell them not to. Imagine that was a shop: “Hey, we are stealing your merchandise unless you tell us not to.” You can’t make this stuff up.

That’s not consent — that’s corporate gaslighting.

We shouldn’t have to fight for what’s already ours.

For the record: Sora 2’s creators now promise better control for copyright holders — watermarks, provenance tags, and verification systems. But that’s not protection, that’s paperwork. They already filled the zone.

The Flood the Zone Strategy

The most effective form of theft isn’t just sneaky. It’s overwhelming — on purpose.

If you flood the system fast enough, by the time the lawyers arrive, the world has already changed. Ask Uber. Ask YouTube. Ask Meta.

In economics, whoever defines the default wins. Opt-out means “you’ve already lost, you just don’t know it yet.”

The pattern is simple:

  • Break the rules.
  • Get rich doing it.
  • Pay fines later — it’s cheaper than permission.

That’s what’s happening with generative AI. It’s flooding the cultural zone — scraping everything we’ve made to train machines that will eventually out-compete the very humans they learned from. Then once the economic machine embraces its power, regulators simply side with the money. They always do.

And we’re letting it happen because we’re too busy marvelling at the magic trick to notice our pockets are being picked.

I Vote “Yes” for AI, but…

Now for the ironic part. I believe all of these technologies (Facebook is borderline) have been a net good for humanity. They’ve improved living standards beyond human comprehension, and yes they’ve caused a lot of pain along the way. But life expectancy and living standards have increased tremendously with every technology revolution. The bit we need to fix, is the chicanery part. The part where regulators get stooged into letting ‘innovators’ define the rules of a new era. Where in reality we only need to make one small change:

Make sure innovators pay for their raw materials.

This simple shift — one single change — would allow us to benefit from the technology, without the largess going to a fortunate few who got there first, and allow humanity to benefit at scale through usage and the economic upside

The way we make it change is simple too: we need to have conversations about it. So be sure to share this with an astute friend. Thanks for reading.

Keep thinking,

Steve.


** Get me into do an AI keynote at your next event. I’ll use this as my testimonial!

The one word that ties this revolution all together

If I had to use one word to tie together this technology revolution we are living through it would be this:

Mobility.

Once we think about all the tools arriving and what they allows us to do, much of it revolves around geo graphic independence and mobility.

Smart phones – mobile computing in all it’s capacities. Mobile communications.

Driverless cars – increased mobility of people and things, independent of human touch.

Wikipedia / Blogging / Vlogging – Mobility of information and ideas, not locked down the the physical location of books or other data sources.

Social networks – Mobility of connections to people, what we are doing and saying flies across the globe at the click of a button.

Work – Ability to get information work done anywhere in the globe.

Drones – Mobility of things, visual footage and data points, and soon people.

Payments gateways – mobility of finance outside of physical banks.

Crypto Currency – mobility of money and payments, independent of any geography or government.

Blockchain & Smart Contracts – Mobility of promises independent of location, and premised on execution of that promise without parties having to meet physically.

3D printing – Mobility of manufacturing – send a file, make it anywhere.

Crowd Funding – Mobility of innovation outside of funding ecosystems.

e-commerce – Mobility of retail, sell to anyone, anywhere.

Cloud Computing – Mobility of data storage – it follows you around the world

Cloud Manufacturing – Alibaba providing access to the world of manufacturing with a few clicks

Freelance markets – Mobility of labour forces for information work.

Given all of this, we need to ask ourselves a simple question to future proof ourselves and or the company we work for;

How are we increasing the mobility of what we make sell or do. It’s a great place to start.

If you want to increase the mobility of your future join me for my new book launch – The Lessons School Forgot – on Tuesday night in Melbourne. Reserve your seat here for a night of inspiration & ideas with good people.

See you then, Steve.

Ignore what the teacher told you, and just make things up

old school

Watch a 5 year old kid play for half a day and you’ll see levels of creativity that’ll blow your mind. You’ll wonder in awe where their natural ability to ‘make things up’ comes from. You’ll be inspired by how they see the world and what it makes them think and do.

We used to see the world that way too.  But what happened was for the first 18 years of our lives we got told how to see the world. In fact, the concept of making things up brings back some very strong and personal memories for me. I can remember when I reached High School (Grade 7-12 in Australia) and that it was no longer Ok to make things up. We had to reference where we got our ideas from. All of a sudden my opinion didn’t matter. What started to matter was researching someone else’s opinion, someone who had been ordained by industrialised society and had been published. It felt so weird. Why couldn’t I just write what I think? Why did it have to be a quotation from someone else? Why did what they think matter more than what I think? We all got taught  got taught stop thinking and start rehearsing. Rehearsing for what you may ask?

Rehearsing the lines for some kind of monetary industrial pantomime.

We were getting taught how to play inside the the modern economy.  An elongated economic play in which we would become ‘extras’ in someone else’s dreamscape. Someone else had the starring role, but they needed all sorts of support so they could be the stars of the show. And we went along with it. But now the exact opposite of what we got told, is where all the value is being created.

The trick they pulled on us to not have any original ideas, to not create anything new, to keep our opinion to ourselves is rapidly becoming redundant. And this gets me excited. We all still have the ability to just ‘make things up’. Now that we have access to the tools to create anything, now that the economy is being totally redesigned, we just need to forget what we got told, and start to write some of our own lines.

New Book – The Great Fragmentation – out now.

Mindset & Tools

Digital Mindset

There’s a whole lot of tools we have at our disposal which didn’t even exist a few years ago. From a business perspective many of them present a counter intuitive option to the ‘Harvard Industrial Complex’. Yes, those established principals of what we thought we already knew about what worked in the market.

Trust the crowd to co-design our product? Are you crazy?

Get funding from future customers with out giving equity? How we going to do that?

Share revenue with content creating customers? Don’t be silly let’s keep it all for ourselves.

Co-opt with our competitors to grow the entire ecosystem? No way, let’s grow our market share instead.

Launch products with lower margin than those they’ll cannibalise? It’s uneconomic and stupid.

When the world changes, what once seemed ridiculous quickly becomes rational. Startups are now redefining what can work in a world driven by cheap and even disposable technology. It turns out having access to the new tools is not enough, we also need access to a new mindset.

New book – The Great Fragmentation – out now!

3D printing is nothing special

People who read this blog and know me are aware of my obsession with 3D printing – and the fact that I think it will be bigger than the internet. Recently I had an experience with my 3D printer which was most enlightening. Before I share the story let me share a terrific definition of technology:

TechnologySomething that was invented after you were born.

So I was playing with my 3D printer in my home office when my 3 year old daughter entered the room. I asked her if she wanted me to print her something. Maybe a toy or some jewelry. She replied simple ‘Ok daddy’ and seemed pretty excited about it. Who wouldn’t be, it’s a 3D printer for crying out loud. So we picked one of the bracelets from the picture below, and sent the file to the printer. A pressed the print button and it started printing. I was pretty pumped. 3D printing my little girl some personal jewelry, immediately in my home office. I quickly said “Look, Look, it’s printing it.” To which she replied in a nonchalant manner. “Ok, thanks daddy”

Sure she was excited about the jewelry, but not the process. The process was irrelevant to her, she just wanted the thing.

3D printed bracelet

When the print job was done, I called her back in and said “Look, here it is, I printed it for you!!!”. To which her reply was much like the previous one regarding the process. She said “Thanks daddy” and then put it on her wrist and skipped away to get on with her 3 year old life.

3D printing to her is as ‘normal’ as cars, TV, airplanes, computers and microwave ovens. How can it not be, it was invented before she was born. It’s just another of the thousands of normal everyday thing she is seeing for the time. Nothing more or less special that the other technology in our lives.

But the really significant element is that by the time she is 13 years of age, yourself and every person we know will have a 3D printer. We’ll all be printing things in our homes on a daily basis. And if you think that isn’t possible, let me remind you that every social media channel you currently use today didn’t exist 10 years ago, and we already know how much that changed our social and economic landscape.

3D printing is NOW – get on it and don’t regret you let this entrepreneurial opportunity slip you by.

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The new industrial revolution – Chris Anderson

I’ve been a big fan of Chris Anderson for a long time. And he’s done it again. While I haven’t read his new tome “Makers – the new industrial revolution” – if this talk is any indication of the content, it will be mind blowing. Not only is Chris one of the most insightful technology visionaries, he also has a knowing way to explain his ideas with simplicity and conviction.

I’d recommend this talk to anyone who is interested in the future – it might just be the best hour we invest before the end of the year. And this talk ensures we know what’s coming, whiling helping us realise the gravitas what’s already happened. Enjoy!

[youtube=http://www.youtube.com/watch?v=3grzYoJ2oPQ]

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The end of Fredrick W Taylor

Then:

Taylorism defined our world for the best part of the past 100 years. Even in marketing realms. During the mass media era, we could use tested methods to go to market with predictable success – so long as we had access to the right resources.

Now:

Rapid change and fragmentation is the new normal. While we are half way through planning, someone else will arrive and do it different, cheaper, better and in a way we never quite expected. Both in terms of what they build and how they spread the word.

Therefore:

Our mindset when it comes to startups and business (isn’t everyone in business a startup now?) should be fluid and philosophical. It’s time to drop the template and best practice six sigma bull crap.

It is very hard for a best practice to exist when something has never been done before.

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