Wealth File #11 - Choose To Get Paid Based On Results

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

Excellence is at the foundation of the secrets of the millionaire mind, and the results are evident in the consequences of your actions. 

Have you ever been given this advice before? “Go to school, get good grades, get a good job, get a steady paycheck, and be on time, work hard . . . and you’ll live happily ever after”?

I don’t know about you but as for me, I’d definitely like to see the written assurance on that one.

Sadly this advice comes from the Book of Fairy Tales, Volume 1, immediately after the tooth fairy story.

I’m not going to bother exposing the falseness of the whole statement.

You can do that by looking into your own experience and of those around you.

What I will talk about though is the thought behind the “steady” paycheck. Being able to get a fixed paycheck is not wrong, unless it gets in the way with your ability to gain what you’re worth.

There’s the rub. It usually does.

Poor people choose to be paid a guaranteed, agreed, steady, secure salary or hourly wage.

They want “security” of knowing that the same amount of money comes in at exactly the same time, month in and month out.

What they don’t know is that this security comes with a price, and that cost is wealth.

If you base your life in security then most likely, your life is based in fear.

You’re in fact saying “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 on the other hand prefer to get paid based on the results that they produce, if not totally, then at least partially.

Rich people generally have their own business. They gain money from their earnings.

They usually work on commissions or a portion of revenue.

Wealthy individuals choose stock options and profit sharing over higher salaries.

Notice that there is no assurance with any of the above. As mentioned earlier, in the financial world the rewards are more often than not in proportion to the risk you’re willing to take.

Rich people trust in themselves.

They are confident in their value and in their ability to provide it. Poor people on the other hand don’t, which is why they need “guarantees.”

I once had to deal with a public relations consultant who wanted me to pay her $4,000 every month for her services. I asked her what I’d get for my $4,000.

She said that I’d see at least $20,000 of exposure in the media every month.

Then, I said, “What if you don’t produce those results or anything close to it?”

She replied that she would still be putting in the time, so she deserved to get paid.

I responded, “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?

No.

Is she broke?

Yes.

And she will be for the rest of her life until she realizes that in order to get rich you will need to be paid based on results.

Poor people exchange their valuable time for money.

The problem with this approach is that your time is limited.

This result to breaking Wealth Rule # 1 (cue drum roll for the introduction): “Never have a ceiling on your income.”

If you prefer to get paid for your time, you are murdering your chances of getting rich.

This rule applies to the personal service industry too, where you’re also generally paid for your time.

Hence the reason that consultants, accountants, and lawyers, not yet partners in their firm—ergo not receiving shares in business profits—live moderately at best.

Picture yourself in the pen business, receiving an order for fifty thousand pens.

What action do you take?

You’d basically call up your supplier, order the pens, have them delivered, and count your profits with a smile.

Now for the flipside of the coin, imagine you are a massage therapist, blessed with fifty thousand people knocking down your door for one of your epic rub downs.

What to do? I bet you wish you were in the pen business now! 

What other option do you have? 

Calling customer # 50 000 that you’re running “a little late,” trying to confirm their appointment for Thursday at 3:15, four decades from today?!

I’m not saying being in the personal service business is wrong. I am saying though, that you won’t get rich anytime soon unless you duplicate or leverage yourself.

My seminars produce a multitude of salaried or hourly wage working class folk who complain about not getting paid what they’re worth.

My response is “In whose opinion? I’m sure your boss thinks you’re being compensated fairly. Why don’t you get off the salary treadmill and ask to be paid based fully or partially on your performance? Or, if that is not possible, why not work for yourself instead? Then you’ll know you’re making exactly what you’re worth.”

Surprisingly, this advice doesn’t seem satisfactory to these people, who are clearly mortified by the idea of testing their “true” value in the marketplace.

The fear surrounding most people to be paid based on their results is generally associated with the fear of breaking out of their old conditioning.

I’ve found that people stuck in the steady-paycheck-cycle have past programming convincing them it’s “normal” to get paid for your time at work.

Now don’t blame your parents (unless being a good little victim is your thing).

Most parents tend to be overprotective, therefore it’s reasonable for them to promote a secure livelihood for their kids.

Hence, when you’re doing work that doesn’t provide a steady paycheck they usually probe you with “When are you going to get a real job?”

I look back in gratitude to my reply when my mother asked me that question. 

“Hopefully never!” is what I said to her.

She was devastated! My father, however, responded with, “Good for you.

You’ll never get rich working on straight salary for someone else.

If you’re going to get a job, make sure you get paid on percentage.

Otherwise, go work for yourself !” 

I’m inclined to encourage anyone to work “for yourself.”

Start your own business, get a percentage of revenue or company profits, work on commission, or get stock options.

Whatever your vehicle, position yourself in a situation that allows you to get paid based on your results.

Personally, I believe almost everyone should own their own business, whether full-time or part-time. Reason one being that the vast majority of millionaires got rich because they own a business.

Secondly, it’s exponentially hard to create wealth when mister tax-man hogs half your earnings.

As a business owner, writing off expense portions for your car, education, travel or your home, could save you small fortunes. 

This alone is reason enough to own a business.

Source: Secrets of the Millionaire Mind T. Harv Eker © 2003