Are you finding arbitrage or building arbitrage?

When I first started building my career in earnest, Gary Vee was using the term “attention arbitrage” to explain what people needed to be concerned with in the then-nascent creator economy.

Hi,

When I first started building my career in earnest, Gary Vee was using the term “attention arbitrage” to explain what people needed to be concerned with in the then-nascent creator economy. In short, arbitrage results from a gap between demand and supply. If there is more demand than supply, the delta, or difference, between the two is arbitrage.

I’ll be honest: every time I heard that term for years, my teeth started gnashing together.

That said…he was right, and I hate that he was right. Since sucking it up and accepting he was right, though, I’ve identified two ways businesses can use arbitrage in their own business. It’s completely revolutionized how I think about my efforts.

Let’s step back for a minute and talk about the way I define arbitrage. I define arbitrage as the difference, or delta, between supply and demand. When there is more demand than supply, then there is an arbitrage opportunity. Here are some examples of arbitrage as I would define it:

• A classic example in finte…