Wealth File #11 – Choose To Get Paid Based On Results
Rich people “choose to get paid based on results.”
Poor people “choose to get paid based on time.”
Have you ever been given this advice before? “Go to school, get good grades, get a good job, get a steady paycheck, and be on time, work hard . . . and you’ll live happily ever after”? I don’t know about you but as for me I’d definitely like to see the written assurance on that one. But, unluckily this advice comes from the Book of Fairy Tales, Volume 1, immediately after the tooth fairy story.
I’m not going to bother exposing the falseness of the whole statement. You can do that by looking into your own experience and of those around you. What I will talk about is the thought behind the “steady” paycheck. Being able to get a steady paycheck is not wrong, unless it gets in the way with your ability to gain what you’re worth. There’s the rub. It usually does.
Poor people choose to be paid a steady salary or hourly wage.
They want “security” of knowing that the same amount of money comes in at exactly the same time, month in and month out. What they don’t know is that this security comes with a price, and that cost is wealth.
If you base your life in security then most likely, your life is based in fear. You’re in fact saying “I’m afraid I won’t be able to earn enough based on my performance, so I’ll settle for earning just enough to survive or to be comfortable.”
Rich people on the other hand prefer to get paid based on the results that they produce, if not totally, then at least partially. Rich people generally have their own business. They gain money from their earnings. They usually work on commissions or a portion of revenue. Wealthy individuals choose stock options and profit sharing over higher salaries. Notice that there is no assurance with any of the above. As mentioned earlier, in the financial world the rewards are more often than not in proportion to the risk you’re willing to take.
Rich people trust in themselves. They are confident in their value and in their ability to provide it. Poor people on the other hand don’t, which is why they need “guarantees.”
Recently, I was dealing with a public relations consultant who wanted me to pay her $4,000 every month for her services. I asked her what I’d get for my $4,000. She said that I’d see at least @20,000 of exposure in the media every month. Then, I said, “What if you don’t produce those results or anything close to it?” She replied that she would still be putting in the time, so she deserved to get paid.
I replied, “I’m not interested in paying for your time. I’m interested in paying you for a specific result, and if you don’t produce that result, why should I pay you? On the other hand, if you produce even greater results, you should get paid more. Tell you what: I’ll give you fifty percent of whatever media value you produce. According to your figures, that would mean paying you ten thousand dollars per month, which is more than double your fee.”
Did she go for it? No. Is she broke? Yes. And she will be for the rest of her life until she realizes that in order to get rich you will need to be paid based on results.
Poor people exchange their valuable time for money. The problem with this approach is that your time is limited. This result to breaking Wealth Rule # 1, which states,
“Never have a ceiling on your income.” If you prefer to get paid for your time, you are losing your chances of becoming wealthy.
Source: Secrets of the Millionaire Mind, T. Harv Eker © 2003