Sexy Businesses Underperform

Scott Galloway explains how the sexier or more attractive a business appears, the lower the return on investment tends to be. Here's the framework he presents:

Core Principle

• The sexier the business, the lower the return on investment
• Focus on talent over passion when choosing career paths
• Aim for mastery in less glamorous sectors with high employment rates

Why Sexy Industries Have Lower Returns

• Fashion, arts, movies, modeling, sports have poor economics unless you're in top 0.1%
• Example: SAG-AFTRA actors (most talented in world)
  • 182,000 members total
  • 87% don't qualify for health insurance
  • Most make less than $23,000 per year

Better Career Strategy

• Find what you're good at (talent) vs what you're passionate about
• Commit to developing mastery in that field
• Choose industries with:
  • 90%+ employment rates
  • Less competitive/sexy sectors
  • Higher returns on investment
  • Boring but profitable business models

Benefits of This Approach

• Economic security
• Financial stability
• Professional camaraderie
• Career prestige
• Job relevance
• Joy of mastery will create passion

Personal Application

• Use your twenties for:
  • Workshopping different roles
  • Finding what you're good at
  • Testing different industries
• Do passion projects on the side
  • Example: "Be a DJ on the weekends"
• Focus main career on areas with better economics
• Develop mastery in practical fields that pay well

The key takeaway is to prioritize talent and practical career choices over following passion into highly competitive, low-return industries.