Let me pose you this question. Between a pop star like Madonna and a heart surgeon, who creates greater value in a person's life? Of course it is the heart surgeon! The heart surgeon has the ability to save a person's life whereas Madonna can only make a person feel good for a couple of minutes. Why then is Madonna paid 100,000 times more than a heart surgeon? What does Madonna have that the typical heart surgeon does not have? The answer is the 'scalability factor.' The scalability factor is the final and most powerful component of the income formula.
It is what separates the rich from the super rich. The scalability factor is the extent to which you can MAGNIFY or MULTIPLY the effects of your value. It is the extent to which you can leverage your value & time. The Power of Magnifying Value For example, for three hours work, how many lives can the heart surgeon save? He can probably only save one life.
He creates tremendous value, charging probably $20,000, but he can only touch one life. In that same 3 hours of performing in a concert, how many people does Madonna's singing benefit? Thousands and if it is broadcast live, maybe even millions. So the value she creates is magnified tremendously whereas the surgeon does not have the power of magnification. The Power of Multiplying Value If Madonna were to spend three hours singing a series of songs in a studio and in were to be recorded on a CD, how many times would she get paid for it? The answer is multiple times. Every time that CD is sold, she would earn a percentage of money, called a royalty.
If that CD album sold a million copies a year, she would get paid $5 million over and over again every year. In this case her value of singing is multiplied many fold! As for the heart surgeon, he would be paid only once for the operation. Must you keep paying him royalties every year in order to keep your new heart? Of course not! As a result, he does not experience any multiplication effect at all. So, as you can see, a person's income can massively increase when multiplied by the power of scalability.
INCOME = VALUE X TIME X SCALABILITY Many people have the perception that you can only achieve scalability when you are singer, movie star, sports star or a famous celebrity. Absolutely not! You can achieve massive magnification or multiplication in any profession, whether you are a chef, garbage collector, lawyer, doctor, teacher or software programmer. When you fully utilize the power of (value x time x scalability), your wealth will grow exponentially! So start keeping track of how you send your time each ay and focus more of your time on high value creation activities and your income will increase.
Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his million dollar secrets and claim your FREE audio CD program '7 Steps To Financial Freedom' here.