We all know a person who is extremely talented at doing something and they treat it almost like a hobby. Perhaps it is a hobby for them. But when you need help fixing your car or with a computer they are there and lend a hand for next to nothing. Perhaps they are a good friend or acquaintance but at the time you would have been willing to give your left arm to have whatever working again. Why do you think so many people pay tons of money to the Geek Squad?
What is your true value?
Your true value is what you think you are worth. You might lie to yourself and say, “I don’t know as much about SEO as So-and-So”. That doesn’t matter. If you think you are worth $10/hr, you are going to make $10/hr. We all know people who make a lot of money doing something they have no right doing because they are a complete, incompetent a-hole. But that doesn’t stop them now, does it?
Value is a frame of mind and the sooner you establish what your true value is, the quicker you can start making some real money. This will likely prompt you to make some drastic changes, but that is ok. In six months, I went from a 40 hour per week, 23k per year help desk technician to working 15-20 hours per week and making over 86k per year! I did that all by making a choice and so can you.
How do I find my true value?
You probably think the idea of simply asking for more money is crazy, but in essence that is what I did. The most important thing you can do for your emotional, financial or spiritual life is to simply ask for what you want. It’s not enough to ask for more money. You have to ask for specifically what you want. I want $50,000 per year and the flexibility to work from home.
There is one caveat to this asking for more business. You have to believe it is possible to reach what you are asking. Asking for a million dollars is nice but if you don’t truly believe that having a million dollars is possible you’ll have a very hard time reaching that goal. Aim for a goal that is substantially higher than what you are making now but within reach. Start with doubling your income first.
If you currently make $25k a year, make your goal $50k a year. Then take that $50k and figure out how much per day it takes to reach that goal. Figure the average workweek of 40 hours and 50 weeks per year minus vacation and you get ($50,000/50 weeks = $1,000 per week)($1,000/40 hours = $25 per hour or $200 per day). This could be as easy as setting up one WordPress blog/business website per week, per client, granted you know how.
Nobody should have a problem trying to figure out how it is possible to make $1,000 per week. If you are having a problem figuring out how to make additional passive income, it is probably due to not having a specific enough goal. Try it once for one week and once you prove you can reach the $1,000 goal for one week I am sure you can find a way to repeat that.
What are people willing to pay?
The short answer is a lot.
People are willing to pay any amount granted the value is there. It is not their job to prove your value assessment right but your job to show their investment is worth the value you offer. This starts with you. Going back to how much you value yourself, your time and your skill set is key. If you don’t truly believe you are worth $25/hr then you wont make $25/hr. You will continually find yourself in low paying jobs constantly grinding away to make ends meet.
I had my wake up call when a family friend put me in my place. I learned from that experience (the one I describe in the video above) that making more money isn’t about the opportunities but about your mindset and your goals.
If you are in the business of solving people’s problems, you’ll find they’ll be willing to pay just about anything in order to make the pain of whatever go away. If you are in the business of providing additional value to their already successful business, you’ll need to show how and why they need to pay you to ensure they don’t end up in pain. The Internet is changing at an exponential rate. It used to be ok to just have a website, an online brochure, but now millions of people (customers) are hanging out in places like Facebook, Twitter, Linkedin and consume content by the bucket loads.
Tons of businesses are finding themselves behind the 8-ball when it comes to things outside their business. If you believe you are worth more and your value justifies, you’ll have no problem finding clients who are willing to pay that exact amount. You’ll find that you will begin to make deals that fall right in line with what you are asking for. Then you simply ask for more again.
Ideas on how do you increase your value to your clients?
Pain is the number one motivator for 99.99% of the human population. I am not saying to start threatening people with physical pain in order to gain their business but to show them how you can stop a certain type of pain for them. If their company is online and their sales have remained the same or tapered off, show them how you can gain them a larger audience.
You can begin by showing your client the number one business website in their field in comparison to theirs. Now show them how quickly their competition is adapting to the changing circumstances and how you can help them to avoid becoming irrelevant in the future. Relevancy and eyeballs equal more sales and profit. Then lay out a plan for them to regain what has been lost and then where it will go from there. You’ll have to rely on past experiences to make sure you aren’t promising a bill of goods you can’t deliver.
Another way would be for you to work for a small base pay and take a percentage of sales or start selling the leads you generate. In the end you can charge a lot more this route because you are taking on more of the burden or risk. This will vary with the amount of trust you have with your clients.
Ideas on how do you increase your value to your boss?
This can be a little trickier. This will depend a lot on your relationship with your boss coupled with some good negotiating skills.
Start by framing up exactly what your intentions are. Creating a solution for a common problem and/or a way to improve the way things currently are. This of course can raise lots of opposition, especially depending on where you are in the organization and whether or not your organization has people willing to change or adapt. For this very reason I decided to quit my full-time job and pursue the life of the self-employed. Others have stayed with their employers and succeeded massively.
For instance, my good friend has stuck with his corporate job and started heaping all of the value he could onto his back. This year he received twice the raise that all my old coworkers received and has positioned himself as an authority to significantly increase his income in the next two years. All of this amid a recession. He was able to position himself as a high commodity in the workspace. This can be done a number of ways.
Firstly, determine what you want and make a plan to reach it. The people who win wars don’t necessarily have better warriors but better plans for reaching their goal. Decide what your goal is and start your plan of reaching it. This will likely not happen overnight, so be patient. If you need to increase your value, then do so.
Secondly, by increasing your interaction within the workplace and with your company’s clientele you gain more leverage. If my friend above were to leave that job for another, chances are high that it would be for much more money due to the added value he could bring to the table. A more complete package. By positioning yourself within a company as an invaluable resource, you arrive to the table with much more bargaining power. This isn’t to say that anything is a sure thing but with the right goal and understood value you can drastically change your position.
Lastly, you can use your past experiences and successes as a bargaining chip for your new future boss. If your current employer doesn’t fully appreciate the value you bring to the table, another will if presented correctly. Know exactly what your goal is and if your current path is not leading to it, find another. That could possibly mean relocating your job.
The most important thing to know is where you want to be and by when. Answer those two questions and you’ll find a way to arrive on time.
I know I am not alone in finding ways to drastically increase my income in a short time-frame. Tell me about some different ways you have exploded your income.