EIGHTH ENGINE: RATES BASED ON ASSIGNMENTS
I once took the call of a young gentleman during my live chat show on a British radio station. He had a lot of qualifications and had graduated from a reputed business school. But his problem was that he was not being able to achieve the type of income he had dreamt of during his studies at the business school. He had a regular job in a good company, but was not satisfied with the pay check he was getting. I asked him “Will you work for me?” “Why, sure”, he replied. I said “I am ready to employ you as my manager, what type of salary would you expect?” “With my qualifications, not less than US$3,500,” he answered. “And how much business you are likely to give me?” I asked. He assured me that he could give me a monthly business of $25,000 by way of sales of books, tapes, CDs and seminar bookings. Then I gave him what I thought was a much better offer. “What if I offered you 33.33% of the total business you give me? You would be earning more than double the amount you asked for,” I explained. “Won’t you pay me any fixed salary?” he asked. “Nope,” I replied. “Sorry,” he answered and turned down my offer. Phew! Why do you think he turned down my excellent offer? Because his mind was conditioned to think of income only in terms of a ‘fixed income’ and ‘a regular pay check’. He expected to be paid a monthly salary based on a fixed hourly rate. Do you think this guy will ever become a millionaire? I doubt it.
More than 90% of the people of ordinary financial status are comfortable with a fixed, regular pay check. I quote here a car advertisement that I like very much: ‘Slavery exists even today. Only we have stopped recognizing it.’ Most ordinary people are ready to struggle for that regular pay check at the end of the month. That is the way their money-map has been programmed. They have always heard their parents insist on a regular pay check. If a youngster earns commission from a business, what he is likely to keep hearing from his parents is “But when will you start doing a regular job?” Most MBA graduates, after getting their Master of Business Administration degrees from the best business schools, opt for regular corporate jobs instead of starting their own business! Isn’t that funny that after getting quality education on how to run a business, an MBA graduate does a regular job for someone else instead of starting his own business? This does not surprise me because I know that there is a serious error in the programming of their minds which makes them seek a regular pay check and a fixed income even after receiving the best business knowledge.
Do you think you will ever become rich by standardising your earnings based on hourly or monthly rates? Never ever! Your rate will slowly increase no doubt, but it will reach a saturation point, beyond which it will not increase significantly. Your income will become stagnant after a point. An hourly rate or a monthly fixed pay check cannot bring you ‘unlimited income’.
Income based on assignments can. In simple words, if you fix your rate on a per-assignment basis, instead of hourly or monthly basis, it will be your key to limitless earning.
Mark and Brad are friends who met while doing their under-graduate studies from a civil engineering college. Both got their degrees together. Mark chose the ‘secure’ lifestyle of a decent job with a construction company at a fixed hourly rate. Brad loved independence and tried his luck with a construction project and got it at the rate which he quoted. He outsourced it to another company and took the commission. At the same time he took up seven other projects and outsourced them as well. Even with eight simultaneous projects, Brad did not have many hassles, for he had outsourced them to other companies who handled them. Brad coordinated with all of them and made sure he kept his deadlines. With the commissions from the eight projects, he hired several managers to look after his next projects and stopped outsourcing. His profits soared. With managers looking after his projects, he also got an opportunity to take a week off for a relaxing coastal vacation. At the end of the year Brad was well on his way to becoming a millionaire. Mark on the other hand was toiling with his fixed duties for his fixed pay check. Remember, they had started out together.
Rich people and millionaires never fix their rates on an hourly basis. They prefer to earn per assignment and per project that they take up. They never think that there could be any uncertainty associated with this way of earning. Such people are never comfortable with the idea of a fixed hourly or monthly rate, unlike most ordinary people. To follow the path of financial champions, have to recondition your mind and start thinking like them. Encourage yourself to get self-employed. Do not harbour notions that a ‘stable job’ is your ultimate aim in life.
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