Would you get in your car right now and go pick it up?
Probably not. And yet, at the same time, there are thousands of people who will drive 5 miles out of their way to save $.05 per gallon on their next tank of gas. Mathematically, there’s no difference.
This illustrates a very simple concept that — if you understand it — will save you HUGE amounts of time and money….and will allow you to earn a huge income in the process.
In fact, since we’re talking about money lying on sidewalks, let me give you another example, one that you probably have heard of.
Have you ever heard the old joke about how much money that Bill Gates makes? Imagine Bill Gates were walking along the sidewalk and saw a $1,000 bill lying on the ground. If he had to stop earning money long enough to bend over, pick up the bill, and put it in his pocket…..he’d be better off just leaving it lying there.
It’s basically just a fun way to point out that, at one point, Bill Gates’s net worth was actually worth more than $1,000 every few seconds.
Whether that particular claim is true or not, one thing IS true: both of these examples illustrate a concept that most people have never heard of. It’s called “opportunity cost”.
What is “opportunity cost”? It’s the value of what you give up by not doing one thing in order to do something else.
I’ll give you an example that might assist you in understanding what I mean.
Years ago, I used to mow my own lawn. Why? Because that’s what I’d always done. We had a lawn-mower and it seemed silly to pay someone to mow my lawn when I had a perfectly good lawnmower myself. Besides….all my neighbors mowed their lawns on Saturday morning. Everything in my environment pointed to the idea of me mowing my own lawn.
A little while after I got involved in the home business industry, I got a different perspective. It went something like this:
1. It takes me about 3 hours to mow my lawn, run the weed-eater and then cleaning up.
2. It takes me about 3 hours to earn $1,000 in my home business.
3. Hiring someone to mow my yard will cost me about $70.
4. Doing it myself will save me $70….but it would COST me $1,000 in lost income.
Read that #4 again. That’s what I mean by “opportunity cost”. Sure, I can mow my own yard and save $70. But what does it cost me to do that? In my case, it costs me the ability to earn $1,000 or more in my business.
Opportunity cost is not something new. It’s actually a common concept taught in any economics class. But it’s not something that is taught in most American schools. Nor do parents always pass it along to their kids. But, if you understand this, you can absolutely get RICH.
Why? Because getting ahead financially is all about engaging in high-value activities and delegating low-value activities. If you can earn $1,000 for your family in just three hours…..why on earth would you spend those same 3 hours doing something that pays you far less? The opportunity cost is much too high.
Here’s another example: how much does your JOB cost you?
Most people — when they think about their job — they view it as a source of income. But, what’s the opportunity cost of your job? In other words, how much money do you LOSE every day by choosing to spend 8 hours working for someone else?
Moms are good at spotting this problem in their own lives. A mom can often look at the income at her job AND the money she pays out for child-care and immediately thinks:
“Why on earth am I doing this? If I do the math…..by the time I pay the daycare, the gas, the wear-and-tear on the car, the cup of coffee in the morning, grabbing a sandwich at lunch, the snack in the afternoon,….my dry-cleaning, etc………I’m only bringing home $20 per day in personal net income. I could work from home AND be with my children all day and earn WAY more than $600 per month.
Read that again. That’s someone who understands the concept of “opportunity cost”.
Here are some other examples for those of you who are already IN the home business industry.
No one can answer these questions for you. But, when I understood the concept of “opportunity cost”, I started making a LOT more money. I quit my job. I stopped mowing my own lawn. And I was able to earn a multiple six-figure income in less than 3 hours a day and spend the rest of my time living the lifestyle of my dreams.
So, the question is: what low-value activities are you engaged in that you can delegate elsewhere? What high-value activities can you start spending MORE time on?
If I can assist with these questions, feel free to post your questions or comments below!
To set the table for this question, let me share with you some comments made on my Facebook wall earlier today:
since there’s a more than 95% FAILURE rate in this industry, I’d say that means that there’s something VERY wrong with it… companies are NOT set up properly, the role of a sponsor is VERY important to new and inexperienced people…
For far too many “sponsors”, their idea of “training” is to throw a bunch of worn out email and pdf’s at the new recruit and tell them to “get on the corporate rah rah” call… … which can be great… but are more like eating Chinese food… awesome while it lasts and, 20 minutes later, you can’t remember what you ate (heard) and you are hungry all over again.
Let me first say that I believe any sponsor worth his salt is going to provide training and support to his team. It’s not even a statement that needs to be made because….well, it should go without saying.
With that said, though…..how much support does a new distributor need? Obviously it’s a question that will have many answers depending on who you ask. But it makes me think about how things were when some of us joined the industry years ago.
When I got started in my first serious endeavor, I went home from the meeting with
— a company catalog
— an 8-page booklet packet of 8 1/2×11 sheets that looked like it was a 10th generation copy of how the pay plan worked
— the “pink copy” of my enrollment form
— a cassette tape about the company
That was it. And that was probably more than a lot of the old-timers got when they joined the industry 10 and 20 years ahead of me.
And yet, I made it work. I enrolled 6 people in my first month. Within 90 days I was earning enough to quit my job. If I needed something and didn’t have it, I either figured out how to do without it….or I create what I needed.
Back in the old “Dead Doctors Don’t Lie” days, thousands of people got started and received little more than I did. Maybe a few copies of the cassette tape to hold them over until their own order came in. A booklet that explained how the tape system worked. A price list for products. That was about it.
A friend of mine joined Excel telecom in the 90s. He got a few nicer materials than I did but it was still nothing to really write home about. Most of it was company “propaganda”….no real sales tools or instructions on how to start building a business.
Fast-forward almost 20 years. Even the most LAME network marketing company offers 10X the amount of support that I (and many of you) lacked when we got started. And, from what I see, it seems that most companies offer at least some or all of the following:
A full schedule of conference calls
Weekly webinars and “over-the-shoulder” video training
Replicated squeeze pages
Company sponsored promotions
Social media tools
And I understand that some of the things that we offer are a bit more complicated than the old days of “make a list of people you know”. But, at the same time, whenever I hear people who say they “couldn’t make money because they didn’t have any support”……
….I find myself thinking, “Really? You honestly think you didn’t have any support? You’ve got 100X the support that many of us had when we got started. And yet we had more desire than excuses. ”
So it all begs the question: are people in our industry REALLY lacking support? Or are they lacking in self-reliance?
What do you think?
What if you could instantly have a conversation with someone who’s on the same page as you?
What if you could see the moment that someone arrives at your Facebook Profile and send them a hello message?
Or, what if you could have a chat with anyone who visited your lead capture page, just to make a personal connection?
In other words, what if EVERY single website on the Internet allowed social interaction, even if the website wasn’t set up for it?
Well, it’s already available (in beta) and it’s free. It’s a new browser plug-in lets you interact with any other users who are visiting the same web page as you. The only catch is that you can only see people who have also installed the browser plugin. So, it may take some time to reach a critical mass.
Still, passing the word to your own friends is a great way to start……and you’ll be interacting with people that you already know and like!
Get started at WhoIsLive.com
And use the Share buttons to pass this along to others!