Stop Chasing Gold, Start Selling Shovels

In 1848, the richest man in California wasn't mining for gold. He was selling shovels.

When gold was discovered at Sutter's Mill in 1848, it kicked off one of the largest mass migrations in American history. The California Gold Rush drew hundreds of thousands of people, all hoping to strike it rich.

But life for these prospectors was anything but easy. The camps were rough, costs were sky-high, and the risks were overwhelming. From 1851 to 1853, the height of the Gold Rush, about one in five people who arrived in California died within six months. Diseases like cholera spread through contaminated water, while dysentery, typhoid fever, and scurvy ran rampant. Mining accidents, river drownings, and violence in the lawless camps added to the grim tally.

For most, the dream of striking it rich was just that—a dream. Very few miners ever walked away with real wealth.

But Sam Brannan did. He became California’s first millionaire during the Gold Rush, pulling in $150,000 a month at one point—equivalent to $5.4 million a month today.

But Brannan wasn’t mining for gold. He was selling shovels.

In 1848, Brannan owned a general store in San Francisco. When he caught wind of the gold discovery, he didn’t head to the mines. Instead, he bought up every pickaxe, shovel, and gold pan in the region. As prospectors poured into California, Brannan was ready, selling tools at wildly marked-up prices. A gold pan that typically cost 20 cents went for $15 at his store.

Brannan’s success wasn’t glamorous, but it was smart. He saw the real opportunity—not in chasing gold, but in helping others chase theirs.

Fast forward to today. You might think, That was a long time ago. The world doesn’t work like that anymore.

But it does.

Take Amazon. While its North American retail division generated an impressive $352.8 billion in net sales in 2023, Amazon Web Services (AWS)—its modern-day "shovel"—proved far more profitable. Despite bringing in a smaller $90.8 billion in sales, AWS generated $24.6 billion in operating income, substantially outperforming retail's $14.9 billion.

AWS succeeds by providing the digital infrastructure that powers 34% of the world's top 100,000 websites. From Netflix to government systems, AWS sells the essential tools of the digital economy—storage, computing power, and development platforms. Like Brannan's shovels, AWS enables others to pursue their goals while generating outsized returns.

The point I am trying to make here is that there is a solid argument to be made that the best way to help yourself, is to help others. So this week, let's talk about why helping others is worth your time, what it means to be strategic about service, and how to find your own 'shovels' to share.

The Strategic Value of Service

If you've watched Shrinking on Apple TV+ (and you really should), there's a great moment in season two where Gaby, a therapist, explains the concept of psychological egoism to her well-meaning but overbearing neighbor Liz. The concept suggests that even our most selfless acts are ultimately driven by self-interest. Whether we're seeking positive feelings, avoiding guilt, or building purpose, there's always something in it for us.

But this isn't cynical—it's human nature at its most practical. When you help others, you:

• Build Trust Through Action: Offering assistance without expecting immediate returns shows reliability and builds the kind of trust that money can't buy. People remember those who supported them and naturally reciprocate when opportunities arise.

• Create Lasting Loyalty: Consistent support, whether through mentorship or encouragement, builds deep connections. When people know you genuinely care about their success, they become invested in yours.

• Generate Organic Opportunities: By helping others succeed, you create a network of people naturally inclined to share opportunities, make introductions, and open doors you might never have discovered otherwise.

The Power of Showing Up

A few years ago, my wife found a free pool table on Buy Nothing, a local group where neighbors give away items they no longer need. The woman giving it away, Allie, was helping an elderly homeowner clear out her house before selling it. We went to pick up the table, excited about the find, but quickly realized we had a problem: the pool table was in the basement and weighed a ton.

It was more than the three of us—me, my wife, and Allie—could handle. Without hesitation, Allie called her husband, Chris. Chris is a tank of a man, and with his help, we got the table out of the basement, loaded into our truck, and eventually up to our cabin, where it still lives today.

What stuck with me wasn't just their willingness to help us, but how they went above and beyond for the elderly woman. Allie and Chris weren't just getting rid of things—they were making her life easier during what was likely a stressful time. That's just who they are. They help because it's part of their nature.

Here's the ripple effect: when they need something, we're always happy to show up for them. They've even been up to the cabin a couple of times, and the relationship we've built feels natural, rooted in mutual support.

Practical Steps to Help Strategically

You don't need grand gestures to make an impact. Small, intentional actions often create the most significant ripples. Here's how to start:

• Identify the Need: Look around your workplace, social circle, or community for challenges you're uniquely positioned to address. Sometimes it's as simple as sharing a template with a struggling colleague or making an introduction for someone starting a business.

• Match Resources to Needs: Consider what you can offer:

  • Knowledge and expertise

  • Useful tools or resources

  • Valuable connections

  • Genuine encouragement and support

• Take Consistent Action: Choose one small step to help someone move forward:

  • Share a resource that solved a similar problem for you

  • Make a thoughtful introduction

  • Offer specific guidance or feedback

  • Follow up on previous conversations with support

Tangible Takeaway: Your "Shovel Sharing" Action Plan

Turn these ideas into action with three simple steps:

✅ Identify: Who in your network—a coworker, friend, or family member—could use your help right now?

✅ Match: What do you have that could make their life easier?

• Knowledge or expertise you've gained

• A useful tool or resource

• A valuable connection

• Specific encouragement or feedback

✅ Act: Take one small step this week to help:

• Share that tool that saved you time

• Make the introduction you promised

• Send the template you use

• Offer the specific advice you wish you'd had

That's it—one person, one intentional action, one shovel shared.

In Conclusion

Think about Sam Brannan and AWS again. They didn't just sell tools—they enabled dreams. Brannan helped prospectors chase gold, while AWS helps modern businesses build their digital future. Their success came from understanding a fundamental truth: the best way to succeed is to help others succeed.

This isn't just feel-good advice—it's a proven strategy that's worked from the Gold Rush to the Digital Age. Whether you're sharing knowledge, making connections, or offering support, you're creating value that ripples outward, often returning in unexpected ways.

Your "shovels" might not make you California's first millionaire, but they could be exactly what someone else needs to strike gold. And in helping them succeed, you might just discover your own most profitable path forward.

As always, thanks for reading,
Derek
p.s. Have something interesting you think I should write about? You can reply to this email (or any other Chief Rabbit email) to suggest it. 

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