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The 3 Things That Determines Your Income

Name: The 3 Things That Determines Your Income
Uploaded: 2024-10-26T14:00:41+00:00
Duration: 43 s
Channel: Shanli Liu, CPA, CTP
Description: In this short monologue, the speaker outlines three key variables that together determine how much money a person can earn in their career. The first…

26 Oct 2024 · 1 min

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In this short monologue, the speaker outlines three key variables that together determine how much money a person can earn in their career. The first variable is the total value a person can create for others. The second is the individual's ability to negotiate and capture a share of that created value. The third is the scarcity of other people who can produce the same value—if many can, the individual's negotiating position weakens. The speaker illustrates the concept with a sales example, noting that even if one can generate millions in value and negotiate well, the income potential disappears if others can deliver the same value for far less compensation. The overall message stresses the importance of creating unique, hard‑to‑replicate value and mastering negotiation to maximize earnings.

Chapters

The amount of money that you will be able to make in your career comes down to 3 variables. Number 1 is the value that you're able to create in total for all of the people you create it for, times your ability to negotiate how much of that value you're able to get, times amount of other people who can also create that value. And you have to have all 3. If you develop a skill of sales and you can create millions of dollars in value for a company and you're really good at negotiating, then in theory you'd get millions and millions of dollars from that company. But if somebody else is willing to work work for a few hundred thousand dollars a year in order to make that value, then your position disappears. Not only do you want to be able to create that value, you want to be able to create a value in a way that no one else can.