“Your choices are made in a moment, and yet their consequences transcend a lifetime.”
― M.J. DeMarco
The Law of Effection
Although there’s nothing inherently wrong with having a job and working for one company, my scale of impact will always be limited.
As an employee working for a single organization, my quantity of magnitude is fixed to one. No matter what level of significance I make, I’ll always be constrained by the number factor.
In the workplace, the only way to increase my income is to get a higher salary through work experience.
But what if I expanded the number of organizations or clients I worked for?
That way I can grow my pay leveraging the power of scale.
The law of effection states this:
Revenue = quantity (scale) x price (magnitude)
If I can help multiple clients, then my income will increase correlated to the number of customers.
Now I have two factors I can utilize.
Leverage Scale and Impact
In the professional world, if you can create true and tangible value that others cannot live without, you can create a massive income.
With an emphasis on scale, you can make millions by selling to millions of people. Even if your price is just a few dollars.
Since your income is the product of scale and magnitude, you can still make millions leveraging price.
If you can help just a few hundred people with your products and services, you increase the probability of making millions of dollars.
The challenge is creating a product or service that is in demand and high-value.
The recipe is simple enough:
Combine one part of the power of scale with a dash of high-value product or service.
The end result is you will make billions of dollars!
Take the company Apple for example. They sell phones, computers, and other electronics that are worth hundreds and thousands of dollars. In addition, their customer base is enormous because people trust and like their products.
By selling electronics that are worth hundreds and thousands of dollars to millions of people, Apple generates billions of dollars in revenue and profit.
The formula to make millions (and even billions of dollars) is straightforward, but definitely not easy.
Most of us create money by working for only a single company. Therefore, the scale factor is always fixed to one. But when we change that number to tens, hundreds, thousands, or higher, our income will dramatically increase.
Even if your price for a product or service is just a few dollars, you can still make a million dollars.
This can also be done by using the power of magnitude, you can generate a massive income by selling high-value products of services to hundreds of people.
However, when you combine the two (scale and magnitude), you can make billions!
Knowing this fact, you can become the creator of your own financial destiny, where you get to set the price and help those who you choose.
Impact millions (billions) and you will make millions (billions).
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If you have any questions and/or comments on the law of effection, please leave a comment below or send me an email.
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