Write Your Own Paycheck

No matter what you do for a living—whether you’re a salesperson, a business owner, a self-employed professional, or an office worker—chances are the paychecks for people performing the same job functions as you vary greatly. Some people are earning a lot, while others are just barely scraping by. Even though you may be in the same market or industry and doing the same day-to-day things, your outcomes are very different.

Why is there such an earnings discrepancy among people in the same or similar job category? Because those who always emerge as the top performers know how to use the Law of Compensation to their benefit.

According to the Law of Compensation, there are no coincidences or circumstances as to why some people earn more than others. In other words, even though you’ll likely hear people say such things as, “He sells more because he has a better market than me,” or “The downturn in the economy has hit my industry much harder than others,” or “Of course she’s paid more…she’s the boss’s niece,”  those external circumstances have little to do with a person’s earnings.

The Law of Compensation is a physical law and will always work; however, to have it work for your advantage you have to understand the elements involved. According to the Law of Compensation, the amount of money you earn will always be in exact ratio to the following five things:

The Need for What You Do
In order for you to be successful, there has to be a market for what you do—the product you sell or the service you offer. If you’re an employee or salesperson in a company, this point is taken care of for you. As long as the company you work for is viable and has hired you for a certain position, then there’s a need for what you do.

If you’re a business owner or self-employed professional, you’ll have to do some research to determine if there’s a market for your offering. Find out if anyone else is offering the same product or service as you. If yes, how much competition is there? Even if the marketplace seems saturated, you may be able to set yourself apart (see point #2). If no one else is doing what you do, why not? Have many people before you tried and failed? Or are you the first in your market to come up with the idea? Whatever the situation, get a clear picture of whether the marketplace can sustain you.

• Email This
• • Stumble It!
• • Digg
• • Share on Facebook
• • Save to Delicious

Comments

• Mortgage 101
• Understand Your Credit