Let’s face it. At some point in your business/ career, you’ve probably lamented that you were not being paid enough. At some point in your business/ career, you probably also felt that someone else around you was being paid too much. Or, perhaps you are feeling that way right now.
Don’t we all deserve to be paid what we are worth? Well, there’s a simple solution to this.
Whether you are an employee or employer, here’s an important idea you should embrace – choose to be paid for results, and choose to pay others for results. Here’s why:
1. This is the best way to earn what you are truly worth.
“Rich people choose to get paid based on results. Poor people choose to get paid based on time”. This was one of the 17 poverty vs wealth files shared by T. Harv Eker in his book Secrets of the Millionaire Mind.
Rich people prefer to be paid for the results they create, because they believe in themselves and what they can achieve. Poor people tend to settle for a steady paycheck – this may give a false sense of security, and they pay the price of not earning what they are (or can be) truly worth.
So, which is more important to you – security, or being paid your true worth?
2. This is the best way to grow your potential and become a master in your field
What you focus on, grows. If you’re paid by the hour, you are likely to be focusing on the amount of time put into your work and tasks. On the other hand, if you are paid for results, you will be focusing on delivering the outcomes that people value and are willing to pay for – be it the best piece of music, the best plumbing services, or the most incisive copy-writing.
Which approach do you think will push you to develop yourself faster and more effectively?
In Selling the Invisible, Harry Beckwith recommends that you price your service not by the hour, but by the value you deliver. You should charge for knowing the right buttons to press (and the cumulative time you took to develop those skills), not just the time taken to execute the service.
In fact, when you focus so much on 1 particular area of passion, such that you become the best in class in that field, you may find yourself living your true purpose/ potential. [Read more about the Hedgehog Concept here]
Putting yourself/ your team to the test
So, the next time you feel that you’re not being paid enough on your job, ask yourself this – are you prepared to put yourself to the test and start your own business (possibly on a part-time basis initially) where you can truly be compensated for your results and value?
If you are an employee (and you are not yet ready to step out on your own), start by proposing to be at least partially paid for (personal and company) results, rather than just being paid a fixed salary or hourly fee.
If you are an employer, consider creating a compensation plan that allows employees and key partners to be paid more on their/ the company’s results.
So, are you game to put yourself and your team to the test?