We all have tremendous earning power. All too often we become lulled into thinking that our worth in life is equal to the amount we bring home in the form of our paycheck. This is simply not true.
Truth be told, all of us have the capacity to earn far more than we realize. This occurs because the companies we work for are experts at obtaining expertise in the most economical way possible.
Each time you interview for a job or even offer up your services as a freelancer you are subjected to a purchasing process that is designed to obtain your expertise as cost-effectively as possible. You hear expressions like, "Our budget only has $X allocated for this position". Many times you will hear, "Our offer is comparable compensation for your position in the industry".
There is a five-step process that you can follow that will help elevate the discussion beyond the traditional discourse that is designed to suppress your earning power. Here are the five steps designed to unlock your true earning power.
Cultivate your expertise. You must begin by understanding where you have deep knowledge or performance excellence. Ask yourself what you can do better than anyone else you know. After you have determined your expertise you need to work at it. Hone your craft. Take classes to make certain that you are up-to-date on the latest innovations in your area. You are looking for a "personal center of excellence".
Step back and view your personal center of excellence from an outsider's perspective. Would someone who didn't know you look to you to solve a problem in this area? Here is a helpful tip – we almost always undervalue our expertise.
Find a problem to solve. Seek out companies or clients who have problems in your personal center of excellence. If you are a marketing genius, look for a firm that is having trouble positioning its product or service. If you are a manufacturing expert, find a company that has a quality product and can't get it to market quickly.
These issues are easy to find. There are articles about them each day in the local newspaper. In many cases you can find problems to solve simply by becoming a customer of a fire you want to work with. The next time you are in a restaurant, look around and think about the things you would do to make it better. This is the mindset you need to embrace as you look for problems to solve.
Find the decision-maker. The next step is to find out who has the most pain as a result of the problem you have uncovered. In many cases it is the leader of the business. Leaders are most often compensated (at least in part) based upon the performance of the work group. They often have the most to lose from an operation that is "broken".
You goal is to get a meeting with the decision-maker (the person with the most to gain from an interaction with you). This will require confidence and persistence. You will need to be pushy but professional. Always keep in mind that you want to help this person. Your aggressive solicitation of a meeting is for the good of his business.
Dollarize your solution. When you finally get a meeting with the decision-maker you will need to succinctly demonstrate how you will help him make more money. This has to be personal. You will need to show him how it will benefit him (through making the business better).
The best way to do this is to show the decision-maker how much he will save (or how much profit he will make) through working with you. As you make this presentation, be sure to use real examples from your past work. If possible, find out how much the current problem is costing his company. Show him how much he will gain if you help take the problem away. You should make the argument that even partial solutions are better than the current state.
Move in for the kill. Once you have shown the decision-maker how much money he will realize by working with you it is time to present your "fee". This is the salary that you desire for this position or your actual fee if you are an entrepreneur.
Your argument in this case is that the business will realize an exponential multiple from your work. In other words, there is a significant return on investment (ROI) for hiring you. If you desire a salary of $100,000 you should show the decision-maker how you will drive a minimum of $600,000 in profit each year you work with him. Most of us can do far better than that but even a 500% ROI is significant.
Following this process is not easy. It takes time, discipline and practice but in the long run you are your best investment.
David Lorenzo has more than 20 years of business experience as a successful corporate executive, entrepreneur, strategist, author, and speaker. He has worked with and mentored some of the world's most successful businesspeople while helping lead many large organizations to unprecedented success. His latest book is titled: Career Intensity: Business Strategy for Workplace Warriors and Entrepreneurs.
Mr. Lorenzo's experience in starting new business enterprises and repositioning under-performing business units, along with his ability to implement innovative performance improvement solutions, makes him one of today's most sought-after trusted advisors.
Mr. Lorenzo is a participant in the Wharton Fellows Program at the University of Pennsylvania, a management think tank that meets regularly to analyze and address timely business issues. He received his MBA from the Lubin School of Business at Pace University, and he received a Masters of Science in Strategic Communications from Columbia University in New York City.
Dave's blog is http://www.careerintensity.com/blog
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