Let me ask you a question:
Between a pop star like Madonna and a heart surgeon, who creates greater value in a person's life?
Ans: of cos is the Heart Surgeon!!! The heart surgeon has the ability to save a person's life whereas Madonna can only make a person feel good for a couple of minutes.
So why Madonna is paid 100,000 times more than a heart surgeon?
The answer is 'Scalability Factor'.
The scability factor is the final and most powerful component of the income formula. It is what separates the rich from the super rich. The scalability factor is the extent to which you can magnify or multiply the effects of your value.
The Power of Magnifying Value
For example: for 3 hours work, how many lives can the heart surgeon save?
He can probably only save one life.
He creates tremendous value, charging probably $20,000 for an operation. But he can only touch one life.
In that same 3 hours of performing in a concert, how many people does Madonna's singing benefit?
Thousands and if broadcast live, maybe even millions.
So the value she creates is magnifies tremendously whereas the surgeon does not have the power of magnification.
