Thursday, September 27, 2007

MILLIONAIRE SECRETS - Why You Earn Less Than Michael Jackson


Yes, you read it right, why is it that you earn much less than a pop star like Michael Jackson? Have you ever thought of this question before? I bet you don't. Let me give you one brief example, between a heart surgeon and a pop star like Michael, who earns more? The answer is obvious, it is definitely Michael Jackson can earn a lot more than a heart surgeon.

But you might ask, a heart surgeon creates more value than a pop star (Before this I've posted about Your Value Determines Your Income, you can read how value determines your income if you don't understand how value in our life works). Indeed that a heart surgeon creates more value than a pop star. A heart surgeon can save life, but a pop star only brings you joy. However, what a surgeon lack is, scalability factor.

The scalability factor is a very important component if want to increase your income and make more money. The scalability factor can magnify your works and multiply the value you create. Take back the previous example of a heart surgeon and Michael Jackson. A heart surgeon can save some one's life in an operation, say 3 hours. And the heart surgeon can make probably $3000 for his operation. Hence, the heart surgeon creates value in a short time, but he don't have the scalability factor, he can save only one people's life in the same time.

What about Michael Jackson? If he performs a concert, how many people can he reach? Thousands of his fans will rush for him. What if the concert is broadcast all over the world? How many people can Michael reach now? Probably millions. Although the value in the concert he creates is less, but the scalability is much greater. And if Michael's cd albums sold a million copies a year, how many times do you think he get paid? The answer is multiple times.

So now you know that how powerful scalability can be. And if you don't have the scalability factor, the value you create will be of less effective to increase your income. Do not misunderstand that you can only increase your scalability factor if you are a pop star, this is not the case. No matter what profession you are in, you can increase your scalability factor. All you need is to be creative and think out of the box. How can you reach more people by doing less?

Your income is determine by:

Income = Value x Time x Scalability Factor

So you can start keeping track of how you send your time each day and concentrate more of your time on high value creation activities and your income will increase. To Your Success.
Source: The Millionaire Secret

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