Einstein supposedly called it the eighth wonder of the world.

Compounding interest. The magic of small investments growing exponentially over time. Put away a dollar today, watch it become hundreds tomorrow. We all understand this with money.

But here's what most people miss. Compounding interest is behind every successful endeavor. And nowhere is it more powerful than in networking.

And yet. Most founders approach networking like a transaction. They show up to events when they need something. They reach out to people when they're fundraising. They build relationships only when there's immediate value on the table.

Wrong approach entirely.

I know a founder who's been sending a monthly newsletter to his network for three years. Not selling anything. Just sharing what he's learned, interesting articles he's read, updates on companies in his space. Maybe 200 people on the list.

Last month he needed to hire a VP of Sales. Sent one email to his newsletter list. Had five perfect candidates referred to him within 48 hours.

Ask any successful entrepreneur about their biggest breaks. Almost always, it traces back to a relationship they built years before they needed it. The investor who'd been following their journey. The advisor who remembered them from that conference. The customer who trusted them because they'd stayed in touch.

Here's what compounding looks like in networking. That coffee chat you have today with no agenda? In two years, that person remembers you when they're looking for exactly what you're building. The founder you help connect to a customer? Three years later, they're the one making the introduction that changes your business.

But you have to start before you need it. You have to invest in relationships when there's no immediate return. You have to think in years, not quarters.

The founders who get this right? They're constantly planting seeds. Helping people with no expectation of return. Staying curious about what others are building. Following up after meetings just to see how things are going.

They understand that every conversation is compound interest. Every favor you do, every introduction you make, every piece of advice you give – it all grows. Sometimes for months. Sometimes for years. But it always grows.

Here's to those who play the long game. Smart enough to know that the network you build today becomes the foundation for everything you accomplish tomorrow.

Start compounding!

This post was first published on my Substack publication. If you liked this post, consider subscribing to get more such posts in your inbox.