Linear Income vs. Exponential Income Growth
Working hard is always a good trait to have, you cannot win consistently by not working hard, but the other factor that is equally crucial — working smart.
“There are 86400 seconds in a day, and how you use these are critical. What you do today is to show who you are. Nobody’s gonna talk about what you did last week. You have been given this opportunity to be alive in your lifetime. It means absolutely nothing if you don’t take advantage of it.” ― Maria Johnsen
As we probably know, a person’s income is determined by how much value he/she creates. And our income is a direct result of how much value we create.
When you only focus on your value per hour and the time you spend, your income increases in a linear fashion.
However, to become super-rich, you must take into account the scalability factor, which is the extent to which you can leverage your time and value.
The scalability factor is the extent to which you can magnify or multiply the effects of your value.
This is what separates the upper-middle-income earners and the rich from the super-rich.
It explains why someone can make 100 times more money within twenty-four hours than anybody else.
Many people think you can only achieve this kind of scalability by becoming a singer, movie star, or athlete, but that is NOT the case!
The truth is, you can achieve this kind of result in any profession, whether you are a chef, garbage collector, doctor, or software programmer.
When you fully utilize the power of (value x time x scalability), your wealth will grow exponentially.
Here are four major strategies you can use to add the scalability factor to your value:
- Earning royalties and fees from your intellectual property (music)
- Magnifying your value by reaching more people at the same time (online courses, contents)
- Earning recurring commissions from sales and referrals (affiliate marketing)
- Earn profit, dividends, and royalties from businesses (business seminars).
The scalability factor is essential, and this is what separates the rich from the super-rich.
Based on those strategies, here are some questions you can ask to get started
- ‘How can the value I create make an impact on many more people?’
2. ‘How can I multiply or magnify the effect of every hour of work I put in?’
3. ‘How can I do something once, and be paid over and over again?’
By working smart, you can save yourself a lot of time from unnecessary work that gets you minimal results.