Rich people choose to get paid based on results.Poor people choose to get paid based on time.

Have you ever heard this advice: “Go to school, get good grades, get a good job, get a steady paycheck, be on time, work hard . . . and you’ll live happily ever after”? I don’t know about you, but I’d sure love to see the written guarantee on that one. Unfortunately, this sage advice comes directly from the Book of Fairy Tales, Volume I, right after the tooth fairy story. I’m not going to bother debunking the entire statement. You can do that for yourself by checking your own experience and the lives of everyone around you. What I will discuss is the idea behind the “steady” paycheck. There’s nothing wrong with getting a steady paycheck, unless it interferes with your ability to earn what you’re worth. There’s the rub. It usually does. Poor people prefer to be paid a steady salary or hourly wage. They need the “security” of knowing that exactly the same amount of money is coming in at exactly the same time, month in, month out. What they don’t realize is that this security comes with a price, and the cost is wealth. Living based in security is living based in fear. What you’re actually saying is “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 prefer to get paid based on the results they produce, if not totally, then at least partially. Rich people usually own their own business in some form. They make their income from their profits. Rich people work on commission or percentages of revenue. Rich people choose stock options and profit sharing in lieu of higher salaries. Notice there are no guarantees with any of the above. As stated earlier, in the financial world the rewards are usually proportionate to the risk. Rich people believe in themselves. They believe in their value and in their ability to deliver it. Poor people don’t. That’s why they need “guarantees.” Recently, I dealt with a public relations consultant who wanted me to pay her a fee of $4,000 per month. I asked her what I’d receive for my $4,000. She replied that I’d see at least $20,000 of coverage per month in the media. I said, “What if you don’t produce those results or anything close to it?” She answered 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? Nope! Is she broke? Yup! And she will be for the rest of her life or until she figures out that to get rich you will need to be paid based on results. Poor people trade their time for money. The problem with this strategy is that your time is limited. This means that you invariably end up breaking Wealth Rule #1, which states, “Never have a ceiling on your income.” If you choose to get paid for your time, you are pretty much killing your chances for wealth.

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