February 13th, 2009 13:20 EST
Isn't It All About Value?
At the end of the day, how much money you make is always about how much value you deliver to the person who has engaged your services. It may not be a perfect formula, but more or less it works out this way every time. The more value you deliver, the more money you make. If you don`t make too much, you must not be contributing much value to the organization or people that you are servicing.
In the extreme, think about a movie star like Tom Cruise. He makes tens of millions of dollars per film and obviously he delivers that much value to the public around the world. He delivers it in $10 increments, which is two hours of enjoyment for millions of people. Contrast that with Wall Street investment bankers who deliver tens and millions of dollars in value in a single transaction, because they take a small slice of the value of the deals that they transact.
Take a hard look at the way you deliver value. Take a hard look at how much value you deliver. Take a hard look at how many people you`re delivering that value to. The trick is to deliver more value to more people, because more people and more value equals more money to you.
In trying to assess the amount of value that you deliver to someone consider the following concepts:
1. How much better off is the person as a result of their relationship with you?
2. How easily can the person replace the services that you provide?
3. Can you quantify how much better off that person is? For example, if they had a problem that has now gone away, is it possible to measure the amount of dollars that the person has that he or she didn`t have before. Or is it possible to measure the value of not having the problem any more?
4. Is it possible to measure the happiness somebody acquired as a result of being connected with you?
Regardless of how you deliver value, how you quantify value, or how you monetize value, it`s important to deliver it. The more quantifiable it is, the more money you probably can change. The closer you can tie your services or products to actual dollars the better you`re able to monetize it, and the more money you can make. But there`s a still lot of money to be made even when your value is softer and it can not directly be measured.
I am willing to bet that just keeping this concept in mind will help you to deliver even more value in your business or on the job.
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About Joel G. Block, President of Growth-Logic, Inc. Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and faculty member of the iLearningGlobal community. To bring Joel into your company, please visit http://www.joelblock.com or http://www.growth-logic.com. Also, be sure to check out our newest project: a blog to organize the blogs that cover entrepreneurship -- http://www.entrepreneur-hub.com. And finally, for film makers: http://www.filmfundingblog.com -- our newest project.