Unlocking the Power Law: Why Success Is Wildly Unequal and What To Do About It

Hard - Requires significant effort Recommended

Economists once believed life was a bell curve—success would be more or less evenly distributed if you just tried hard. But research on cities, companies, and careers says otherwise: the 'power law' rules, meaning a few rare efforts generate a massive share of results. In venture capital, most investments go nowhere; a handful become Facebook or Google. Even in everyday life, a single project or skill can shape your trajectory more than dozens of average attempts. When people spread themselves thin, they miss out on big wins because energy is lost chasing incremental gains. As studies in decision science show, concentrating resources on breakout opportunities not only increases the chance of success but helps you learn faster—the stakes are high, but so are the rewards.

Start by openly listing everything you’re spending energy on—and then get honest about which projects or pursuits actually have the right mix of excitement and the potential to go big. Instead of trying to be decent at a dozen things, select the one or two where you sense real upside if things work out—then lean into those, letting go of lesser activities (even if it feels uncomfortable). Check in on whether your current top opportunity gets your best hours and effort, and don’t hesitate to reallocate as you learn. When you master the practice of going deep on power-law projects, the impact in results (and fulfillment) is unmistakable. Let yourself try this, and see what unfolds in a few months.

What You'll Achieve

Experience greater breakthrough results by focusing on high-impact opportunities and reduce the frustration of average outcomes from widespread effort.

Prioritize High-Impact Bets and Reduce Spread Effort

1

Map Your Portfolio of Time, Skills, or Projects.

List all your current commitments or investments—identify which have genuine potential (not just likelihood) to dramatically outperform the rest.

2

Select One or Two Opportunities With Explosion Potential.

Rather than ‘hedging’ everywhere, pick the few activities or bets that could be game changers if they work.

3

Cut or Delegate Lower-Impact Tasks.

Reduce your involvement in anything that, realistically, has little chance of being part of breakout success.

4

Review Regularly and Double Down on What’s Working.

Every few months, ask if the best opportunity is getting the most of your energy—adjust quickly.

Reflection Questions

  • Which of my projects or commitments have true breakout potential?
  • What stops me from focusing more where the upside is highest?
  • How can I build up the courage to let go of safe, low-impact bets?
  • What would my schedule look like if I targeted power-law payoffs?

Personalization Tips

  • For a student, focus on excelling in one competition or research project, not ten mediocre ones.
  • In business, shift major effort to the rare client, product, or market segment with exponential growth potential.
  • A hobbyist might quit three casual groups to devote time to developing advanced skills in one area they love.
Zero to One: Notes on Startups, or How to Build the Future
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Zero to One: Notes on Startups, or How to Build the Future

Peter Thiel
Insight 6 of 9

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