There is no secret to wealth creation.

The level of wealth you generate is an outcome of the level you choose to play in the game. Refer the picture below.

The Value Capture Hierarchy: Where Do You Sit?

Not all work is created equal — and not all of it pays the same. The Value Capture Hierarchy is a simple way to understand which kinds of work create (and capture) the most value.

Let’s break it down:

📦 Logistics and Labor (Bottom Layer)

• This is the base of the pyramid — essential, but lowest in value capture.

• It includes manual work, coordination, and operational grunt tasks.

• Time-intensive, repetitive, and often underpaid.

• Great place to start, but hard to scale without burning out or delegating.

🔧 Optimization

• Involves improving what already exists — better processes, better systems.

• Typically seen in project and people management roles.

• You help the machine run smoother, but you’re not reinventing it.

• Requires systems thinking, consistency, and people skills.

🎤 Performance

• Your ability to deliver in the moment defines your worth here.

• Think podcast hosts, keynote speakers, or top salespeople.

• Income is tied directly to how well you show up each time.

• This layer demands energy, presence, and constant output.

🎨 Creativity

• You make something out of nothing — ideas, content, code, designs.

• High leverage, especially if your creations scale or go viral.

• Original thinkers often thrive here, but it can be lonely and high-risk.

• Your ideas are your assets — the better and braver they are, the more you earn.

🔺 Judgment (Top Layer)

• This is where the highest value is captured with the least effort — but only if you’ve earned trust.

• People here are paid for what they decide, not how much they do.

• Example: Warren Buffett makes billion-dollar calls — but might only act a few times a year.

• Experience, wisdom, and strategic clarity define this level. It’s rare air — and worth aspiring to.

💡 Key Takeaways

• Each level up = more value captured, less manual effort, more strategic leverage.

• You can operate at multiple levels at once — but know where your energy is best spent.

• Moving up requires different mindsets and skill sets — not just more hours.

• Knowing where you want to play helps you plan your career and build smarter.

👉 Action Step:
Map your weekly work across these 5 layers. Are you stuck in labor? Dabble in creativity? Trusted for judgment? Time to align effort with impact.

Where am I ?

I am currently at level 2 and with this newsletter I am moving to Level 3.

If you like it, you know what to do.

Cheers