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The Compound Interest of Relationships

J
Jon Chu
November 20, 2024·6 min read

Warren Buffett doesn't just compound money. He compounds relationships.

When asked about his most valuable asset, Buffett consistently points to his network: the relationships he's nurtured for 60+ years that give him first-look access to deals, unfiltered information, and trusted advice.

But here's what most people miss: relationship compound interest works exactly like financial compound interest. Small, consistent deposits over time create exponential returns.

What is relationship compound interest? Relationship compound interest is the exponential growth that occurs when you consistently maintain and nurture professional connections over time. Unlike one-time networking, compounded relationships generate introductions, opportunities, and trust that multiply year over year.

The Math of Relationship Capital

Consider two scenarios:

Scenario A: You meet 100 people at a conference. You follow up with 5. Next year, you repeat.

Scenario B: You meet 100 people at a conference. You follow up with 80. Next year, 30 of those become warm relationships. Some introduce you to others.

After 5 years:

  • Scenario A: ~25 maintained relationships
  • Scenario B: 200+ active relationships, many second and third-degree connections

The difference isn't linear. It's exponential. And it stems from one simple behavior: consistent follow-through.

Why Most Professionals Fail at This

The challenge isn't understanding the value of relationships. It's the cognitive load of maintaining them.

Your brain can actively track about 150 relationships (Dunbar's Number). But your career demands 500+. The gap between what you need and what you can naturally maintain is where relationships go to die.

This is why the most successful networkers aren't necessarily the most social. They're the most systematic.

Building Your Relationship System

Here's the framework I use:

1. Capture Everything

Every person you meet gets logged. Not in a spreadsheet, but in a tool designed for relationship context. Where you met, what you discussed, what you committed to.

2. Categorize by Action

Not everyone needs the same attention. I use three buckets:

  • Nurture: Check in quarterly minimum
  • Activate: Reach out when relevant (travel, shared interest)
  • Archive: Keep details but no active outreach

3. Create Triggers

Don't rely on memory. Set up systems that prompt you:

  • Travel to a new city? See who you know there
  • Read an article? Share with relevant connections
  • Milestone moment? Congratulate immediately

4. Measure Decay

Track how long since your last interaction. Any "Nurture" relationship beyond 90 days is at risk.

The Revolv Approach

This is exactly why we built Travel Mode and Smart Reminders into Revolv. We wanted to externalize the cognitive load of relationship maintenance.

The app tracks decay automatically. It surfaces connections when you're traveling. It prompts follow-ups before you forget.

The goal isn't to automate relationships. They're irreducibly human. The goal is to automate the remembering so you can focus on the connecting.

Start Today

If you take one thing from this: treat your relationships like investments.

Make regular deposits. Watch them compound. And build the systems that ensure you never miss a follow-up again.

The returns will exceed anything in your portfolio.


Key Takeaways

  • Relationships compound like investments: Small, consistent follow-ups over time create exponential network growth.
  • Dunbar's Number is the bottleneck: Your brain can track ~150 relationships, but your career demands 500+. Systems bridge the gap.
  • Systematic beats social: The most successful networkers aren't the most outgoing—they're the most organized.
  • Track relationship decay: Any important relationship beyond 90 days without contact is at risk.
  • Automate the remembering, not the connecting: Use tools to surface who to reach out to, then make the connection human.

Ready to compound your relationships? See how Revolv helps with Travel Mode, Smart Reminders, and relationship decay tracking.

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About the Author

J

Jon Chu

Founder & CEO

Building Revolv to help ambitious professionals remember what matters. Previously at Goldman Sachs and early-stage startups. Stanford MBA.

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