The expected value factor
If you want to make more money, understand this:
(1) meeting the expected value - making the same money as you're making right now
(2) exceeding the expected value - resulted in getting promoted or salary raise or more customers referrals or higher customers satisfactions → resulted in more money
Here’s the steps how to do it:
step 1: we need to identify the expected value - things that we are expected to deliver.
Regardless of whether we are being employed, self-employed, or running a business, we are getting paid to deliver the expected value.
When you are paid $30,000, you are expected to deliver something worth equivalent or more than $30,000. That is expected of you from your employer or your clients.
When you are paid $3,000, you are expected to deliver something worth equivalent or more than $3,000. That is expected of you from your employer or your clients.
No reasonable employer or clients would pay you $3,000 and expect that you do the work of $30,000. They may expect something valued $4,000-5,000 so that they get their monies’ worth and it’s a fairly good deal for them, but no normal employer would ask a junior clerk (of $3,000) to do a CEO’s job or any senior manager’s job. And no normal client would pay for $3,000 and expect to get 300 hours of work by the service or product providers. (it may happen in scams though).
In any case, there is an expected value. And most likely, it’s based on how much you are getting paid.
If you deliver the expected value, you won’t be able to make more money, because this is expected of you.
In other words, it is your obligation to provide the expected value, failing which you fail to do the work and you will lose the job or the client.
So expected value sets the bottom line for delivery.
Finding that out will help us to set our bottom line for delivery:
e.g. in our job description, it would usually set out the expected duties and role of the position, such as you need to handle any day to day contracts (if the company is handling 50 contracts a month, then the expected value of you is to handle 50 contracts a month)— these are the expected value, expected by the employer.
e.g. in the sales page, it would usually set out the deliverables for a program, such as 3 coaching calls each month, 1 workbook etc — — these are the expected value, expected by the clients.
We need to have complete clarity over the expected value so that you know where your bottom line is.
If you haven’t met the expected value yet, strengthen yourself to meet that first before next step.
step 2:
after having complete clarify of your expected value, you can at least keep making how much you are making right now.
To move a step forward, we need to go beyond the expected value.
That’s why having clarity in step 1 is so important, without clarity we won’t be able to set a clear goal of how we go beyond.
e.g. if the expected value is to handle 50 contracts a month, we can add value by creating a standard operating procedure for contract handling, we can add value by handling 2x the expected value (i.e. 100 contracts a month), we can add value by handling the original 50 contracts in half the time (i.e. in half a month) and use the remaining time to do something else such as handling extra work.
e.g. if the expected value is to have 3 coaching calls each month, 1 workbook, we can add value by providing an additional 30-min call, or we can add value by providing recordings of the calls, or we can add value by providing 3 workbooks etc.
Here’s the trick:
it’s not always about doing more….
it could be about doing it in less time (more efficiency)
it could be about doing it better (more effectiveness)
it could be about doing it better and in less time (more effectiveness and efficiency)
as long as you exceed the expected value, you are adding value, and by the law of reciprocity, you will be rewarded more.
Of course, it matters how much you are providing additional value for. If you are providing minimal additional value, your increase in income may not be obvious or could be minimal (or non-existence) as well.
If you are providing significant additional value, that’s when you will really see a difference in your income.
One of the ways to add significant value is to provide consistent output with monetisation channels.
But generally, this is the formula for keeping your existing income and even going beyond that.
In summary:
step 1: clarify your expected value
step 2: design ways to deliver more effectively or efficiently or both to add significant value, no matter what you do.
To your success,
Connie
