Skip the hype, sell the shovel

In every generation, a new gold rush emerges.

It might be cryptocurrency. NFTs. A new social media platform. Or whatever hot AI trend is flooding your feed today. In each of these hype cycles, there’s a crowd rushing in to stake their claim. Most are driven by dreams of fast success, only to discover that hype burns bright — but often burns out even faster. But here’s the truth: the real winners are rarely the ones chasing the gold.

Let’s rewind to the 1800s.

In 1848, gold was discovered at Sutter’s Mill in California. Within months, hundreds of thousands of people from around the world poured into the region, desperate to dig their way to riches. This massive migration is what we now call the California Gold Rush.

Some did strike gold. Most did not. In fact, the vast majority of prospectors ended up broke, exhausted, or died from sickness or starvation.

There’s one person who became California’s first documented millionaire. But here’s the twist: he never mined for gold. His name was Samuel Brannan and he got rich selling picks, shovels, and supplies to the incoming wave of miners. He understood something most didn’t. It’s not always about digging for gold. Sometimes, the smarter move is selling the shovel.

Whenever there’s a wave of hype, the instinct is to dive in headfirst. Everyone’s talking about it, everyone’s investing, everyone’s launching something. And while some people do get lucky, the odds are slim, and the competition is fierce. Instead of diving in, observe the direction of the wave and build something that supports it. You don’t need to be at the center of the storm to profit from it. In fact, being at the edges often gives you more stability and less risk.

• Creator economy? Instead of becoming an influencer, some built software that powers content creation, monetization, or audience engagement.
• Cryptocurrency boom? While many speculated on coins, others built platforms, wallets, analytics tools, and payment infrastructure that could be used by anyone.
• AI explosion? For every AI product, there’s a need for compute power, compliance tools, and API management.

Throughout history, the pattern repeats itself. The people who thrive long-term often build what the dreamers need to chase their ambitious goals¹.

There’s power in being adjacent to the action².

• Scalable demand: As more people enter the hype, they need tools, services, or infrastructure to participate which is exactly what you’re offering.
• Strategic leverage: You’re not competing with the hype, you’re enabling it. That means that when the hype succeeds, so do you. If it doesn’t, you can pivot to the next wave with your established customer base and expertise.

Just like Samuel Brannan did with picks and shovels, your path to success might not lie in chasing the gold. It might lie in helping others chase it.

So next time you see a gold rush forming, ask yourself: “What are they going to need and how can I be the one to provide it?”

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