Do we really understand value and how it applies to business? Is the Law of Value the same as the Law of Compensation?
I’ve been re-reading a favourite book of mine, the Go-Giver by Bob Burg and John David Mann. In the book, they outline the Five Laws Of Stratospheric Success.
The first law is the Law of Value – “Your true worth is determined by how much more you give in value than you take in payment.”
When I first ready that I wasn’t sure what to think. Isn’t a company meant to MAKE money? But of course, the customer MUST receive more value than the money they paid, otherwise they feel “ripped off”. We all know what that feels like and we don’t like it.
The second Law, the Law of Compensation helps the first Law make sense. The Law of Compensation says “Your income is determined by how many people you serve and how well you serve them.”
Too often we mix up value and compensation … and they are two different things.
Value is derived by what we do, from the customer’s perspective – income is derived by how many people we do it for.
Don’t confuse value and compensation. They are two different things.
How might you build your reputation through The Law of Value and grow your business through The Law Of Compensation.