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Value & the Millionaire Mindset

I often think about the next big thing that could potentially net me earnings. It all comes down to your perceived value that you create. You are only worth as much as you put in. There is an ultimate reason as to why (I might get some flack for this... but) flipping burgers is only worth minimum wage.


See there isn't much skill involved in doing what is essentially as task based job. Most jobs are like this... they all work on the same principle you complete a task for a set number of hours which produces **insert item here**, you collect your paycheck and then go home. Never to think about your job again until you clock in the next morning. Or worse you constantly think of your job even off hours. I believe that this principle transcends all the way up to mid-level management. You will only ever be worth the value you provide in an organization. The more people that know what you know and can do it well, the less your skill, whatever it may be, is worth.


I got stuck in this problem myself... I perpetually relied on my instinct to preform tasks and then go home, but while the system is designed to fool us into believing this construct... the people who succeed are the ones that come up with the better solution or fix a problem within a company. It's all fine and dandy to go into work and get your job done, but it doesn't provide any inherent value aside from the paycheck that you bring home.


Assuming you're still with me, let's take this example into mind:


Jack works as a bookkeeper for Lamppost incorporated, a lamppost manufacturer in Boiling Springs Iowa. Jack has a firm understanding of the work he does and he does it well. He works 40 hours a week and makes $50,000. Jack is content with his job and his pay scale. Mark (whom works in the same department) focuses his time and energy not only on his "task list" but on recognizing the bigger picture. This could be the realization that a new procedure or method could yield a tax savings of $50,000. All of the sudden Mark's value to the company is worth way more than the tasks that Jack provides. This is how Mark's salary could top $100,000 a year. The value that he provides proves to be far more useful than the "task" based approach that Jack uses.


For me, I don't think either of those approaches are worth enough. That tells you how to create enough value to move up the "corporate" ladder... for me I have my sights set on the $1,000,000/ year mark. How do we accomplish that? It's no easy feat. There are no road maps to success here, but I fully believe that it is entirely possible. You have to have motivation to do it. I don't want to sound naive here, but it's not all that complicated when you break the numbers down.


To Gross $1 million dollars you can:


  1. Find a way to get 1,000 people to spend $1,000 on your good or service

  2. Find 2,500 to spend $400 with you

  3. Find 10,000 to spend $100 with you

Just to put that in perspective there 333 million people in the US alone. Hell I look at the county that I live in. There are 558,753 of us!! You would need just 1.8% of the population in my county alone to spend $100 to gross $1,000,000 in sales.


It's truly not rocket science here... this is why you see so many "as-seen-on-tv" products. Someone somewhere figured out that by shear numbers $19.99 products work. Let's say that you develop a widget that costs $5 to make that you can sell for $20. You gain $15 on every sale. For ease of math here, we'll also say that mass advertising this costs an additional $5. You then make $10 after every sale. Maybe your conversion rate is 5% of people that see an ad for your widget, actually buy it. You run a marketing campaign, you get your product in front of 10 million people. 500,000 people will buy it. You make half of each sale. You pocket 2,500,000 right off the bat.


Happy with the success of the first campaign you go national. You run the same ad and it reaches 100,000,000 people (roughly 1/3 of the US population) based on the same parameters as above you'd profit $25,000,000. All for some stupid gizmo that you sold for $20.


Let's not forget the drunk guy who thought of a pet rock... he pocketed millions on that idea alone...


There you have it folks... either way you can prove your value and choose a path. Most people won't opt for the I'm going to create something approach, which is why I included a few tips on making yourself more valuable in the work place.


Best of luck,


Andy

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