How To Make Money (Part 3): The Law of Compensation

the law of compensationWho would have thought that ‘value’ could be so two faced? No wonder we all keep getting blindsided by it.


The concept of ‘value’ is critical to understand when it comes to making money.


If you don’t, you can spend a long time spinning your wheels and getting nowhere except totally frustrated, confused and upset.


As we discussed last week, if you get the ‘giving value’ piece of the equation right you will go a long way with making money, but alas like every good equation there is more than one piece to the puzzle.


Let’s go back to the concept of money that we set up in Part 1 of this series for a moment.


Money is nothing but an idea to make the exchange of value easier and more efficient.


Making money involves the giving and receiving of value.


You use your energy to create value. Then you swap that value for money which is a store of value. This enables you to later go out and swap your money for things that you personally value.


This is the value exchange.

Giving Value + Receiving Value = $$$$


Sounds pretty simple right?


I mean how hard is it to receive money for the value you have given?


Say hello to a myriad of deep subconscious problems!


Lots of us get all tangled up when it comes to actually receiving money for value we have created and given. The good old pricing dilemma. In order to price our value we first need to know our worth.


Today’s Tweetable:

How much money we ask for is directly linked to how much we value ourselves and what we bring to the world. 


  This is the Law of Compensation.


the law of compensationIf we have a low sense of self of course we are going to find it difficult to charge top dollar for our services, products or offerings no matter how good they are.


If we don’t value what it is we bring to the table the market can feel it and will respond accordingly.


If we don’t value ourselves enough we will struggle to price our gifts and offerings correctly, we will engage in excessive discounting, apologetic pricing and giving stuff away for free without an attached strategy.


This is all driven by emotions like fear, guilt and shame and beliefs that we are not worthy or good enough. This gets reflected in our body language, tone of voice, marketing and manner.


The market can feel the energy of your self worth and that is what determines how magnetic or not to money you are despite your wonderful offerings.


Ask yourself, how do you respond when someone pays you a compliment?


Do you accept graciously and simply say thank you?


Or do you get embarrassed, brush it off and launch into a full-blown story of why you look a wreck or how cheap your dress was?


This little exercise will give you a subtle insight into what kind of receiver you are.


It will also prepare you for the next part in this series where we will dive right into the concept of raising our total perceived value in the marketplace.


After all, value is subjective right?


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