The Law Of Compensation And Adding Value To People

The Law Of Compensation And Adding Value To People

Hey, this is Matt with operationawesomelife.com. Today, I want to discuss with you The Law Of Compensation And Adding Value To People.

[Video Transcript] The law of compensation is incredibly important. It is especially important if you’d like to increase your compensation in some way.

I have heard about the law of compensation for a number of years now. But to be honest with you, I don’t think I got a great understanding of it and really grasped the concept until hearing about it in Bob Proctor’s Six Minutes To Success Program.

In Six Minutes To Success, Bob Proctor talks about the law of compensation in one of the daily videos. He says that there’s 3 parts to the law of compensation.

I really want to share with you what I learned in that program because I think it’s really valuable. It is something that I think you can put to work in your life. And it will definitely help you on your journey.

What Is The Law Of Compensation?

Okay, so what is the law of compensation?

The law of compensation states that the amount of money that you earn is in direct proportion to 3 things. I want to discuss those 3 things.

The first of the three is the need for what you do. The second thing is your ability to do it. And the third thing is the difficulty there will be in replacing you if you were to no longer do what you do any longer.

Now, let’s get into each one of those, discuss them, and I’ll tell you my thoughts on each part of the law.

Going back to the law of compensation, the first part of it is the need for what you do. I want to use an example here because I think that will help illustrate it better for you.

Real Life Examples Of The Law Of Compensation

If you’re a football fan and if you like to watch the NFL, then this will help you. If not, I don’t know, but I’ll try my best.

Aaron Rodgers is the Green Bay Packers’ quarterback, and he is one of the best quarterbacks in the league. Many people even think he’s one of the best quarterbacks to ever play in the NFL.
Whether you think that or not, it doesn’t really matter. Just bear with me as I explain it using this example.

There are 32 teams in the NFL. Aaron Rodgers is one of the quarterbacks, and he’s also one of the better of the quarterbacks in the NFL.

That means out of the entire world, there are only 32 quarterbacks in the NFL, and out of those 32 quarterbacks, Aaron Rodgers is one of the best of those quarterbacks. How much do you think that is going to help him with the law of compensation?

Part One – Is There A Need For What You Do?

Let’s start off by talking about the first part of the law of compensation. The need for what you do. There are only 32 teams in the NFL. Which means there are only 32 quarterbacks in the world that are starting quarterbacks in the NFL.

To have an amazing quarterback is a huge advantage in the NFL. So it goes without saying there is a strong need for what Aaron Rodgers does.

Part Two – Your Ability To Do What You Do

Let’s talk about the second part of the law of compensation which is your ability to do it.

If Aaron Rodgers is one of the best quarterbacks not only in the world, but among the other 32 teams in the NFL, then obviously his ability to do his job is incredible.

He is better than more than 99% of the world at what he does. So that’s going to obviously get him compensated very well for what he does.

Part Three – Difficulty There Will Be Replacing You

Now, the third part of the law of compensation is the difficulty there would be replacing you if you were to no longer do your job.

There’s only so many amazing quarterbacks in this world. It would be very, very difficult to replace Aaron Rodgers. Because of that reason he’s going to get compensated very well for his job.

Let’s go over it real quickly one more time.

Reviewing The Law Of Compensation Again

The law of compensation says that you will earn in direct proportion to the need for what you do, your ability to do what you do, and the difficulty there would be in replacing you if you were to quit doing what you’re doing.

That’s why Aaron Rodgers and other NFL quarterbacks are compensated extremely well. I hope that will help you guys to get a grasp of what the law of compensation is.

Adding Value To People And Solving Their Problems

Another thing to consider is that the law of compensation is centered around the idea of adding value to people.

We are compensated, by our ability to do this job that is obviously very important. And to do the job better than others.

So to do that, we have to always be looking for how we can add value to people. And also how we can help people by providing answers to their problems.

To make it a little easier for you to understand the law of compensation as it relates to your life, think about how you can add value to people in what you do.

And not only how you can add value to people, but how you can separate yourself from everyone else that does a similar job or has a similar business to what you’re currently doing.

Add Value And Focus On Refining Your Skills

If you can figure out a way to separate yourself from the pack, go the extra step, give people even more value than other people, and if you can make sure that you are one of the best at what you do by continually refining your skills, learning more about what you do, about what people need, and how you can help them solve their problems, then you are going to take care of the law of compensation for yourself automatically.

Assuming that you’re already in an area that there’s a need and that there’s a real problem that needs to be solved, the main thing for you to focus on is your ability to do your job. And not only do it but do it better than others.

If you can make yourself incredible at doing your job, then that’s going to take care of the third part of the law of compensation which is the difficulty it would be in replacing you if you were to quit doing it.

That’s all for this video. I really hope that it was helpful for you so that you could understand the law of compensation better. It really helped me learning about it through Bob Proctor in Six Minutes For Success, and I wanted to share it with you guys because I thought it was a really awesome concept.

I really hope this was helpful for you guys. I hope it will help you gain better understanding of The Law Of Compensation.  And also help you understand how focusing on adding value to people can help you to get the law to work for you in your life.

If you haven’t already, check out this other recent post titled: “How To Create Good Habits In 3 Easy Steps!”

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