What Determines A Person's Income?
Why is it that one person is paid $3,000 a month and while another person is paid $30,000 a month?
The Ttue Definition of Income is:
INCOME = VALUE x TIME x SCALABILITY
A person's income is determined by the amount of value he/she creates multiplied by the time he spends creating value multiplied by the scalability factor.
So how can you Create Value?
There are only 2 ways you can create value for your company. Either:
- Help your company to increase sales or
- Help your company to reduce costs.
How to Translate Value into More Income?
Once you have created tremendous value, you can...
5 Steps:
- Ask for a Pay Increase ( Be confident that you are more than worth the increase!)
- Ask for a PROMOTION & Pay Increase ( When you have demonstrated that you can create more profits, they will be happy to give you a senior management position.)
- Ask for Profit Sharing ( if you dare)
- Ask for variable compesation
- Ask for Stock or Partnership ( if you dare)
