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 bonus report 'Get Out Of The Rat Race Now' at Secrets Of Self-Made Millionaires.
Over the last few years, I have interviewed people who were among the highest income earners in their industry and people who were the average income earners.
Sure enough, I found that age, experience and academic qualifications had nothing to do with their price tags. It depended on how much value they created for their company and for their clients they served.
I want to give you an example of two account directors from an advertising agency. Their jobs entail managing the client's advertising accounts.
A is paid $4,000 per month while B is paid $12,000 per month. Why is one paid 3 times more than another? Lets take a look at the difference in value they create.
Account Director A, Age 46. Income $4,000/month
- Waits for company to assign to clients
- Takes advertising brief from the client
- Instructs the creative team
- Executes ads within deadline
- Manages assigned client well
- Creates gross profits of $20,000/month
Account Director B, Age 33. Income $12,000/month
- Actively networks, makes cold calls & sets at least one new appointment a day
- Actively develops new business & finds his own clients
- Takes the advertising brief from the client
- Develops more marketing ideas that convinces the client to increase the advertising budget.
- Brainstorms & develop a powerful campaign by leading the creative team
- Executes ads and other marketing tactics within deadline
- Tracks the success of campaigns & start developing a follow up strategy to sell to the client
- Uses successful testimonial to secure even more clients
- Creates gross profits of $150,000/month
It is clear why manager B gets paid so much more than A, despite being so much younger and less experienced.
Manager B creates so much more value for the client, and hence generates a lot more profits for his company.
Similarly, your income is determined by the amount of value you create for your clients and your company. You can have all the experience, all the MBAs, all the intelligence but if you do not create value, people will not pay a high price.
So how do you create value?
There are only two ways you can create value for your clients. Either
1) Help them reach their goals faster and easier
2) Help them solve their problems faster and easier.
The more you can do this, the more they will be willing to pay for you!
Similarly, there are only two ways you can create value for your company. Either
1) Help the company increase sales Or
2) Help the company to reduce costs. This will increase the companies profits. You must understand that all businesses have only one major goal, to make more profits every year.
The more profits you can help your company make, the more you will be worth!
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