In our recent posts we explored the foundational law of the Go-Giver philosophy and framework –The Law of Value: Your true worth is determined by how much more you give in value than you take in payment.
We were lucky enough to enjoy a number of excellent posts on The Law of Value from guest bloggers Roland Hanekroot, Wendy Lloyd Curley and Geoff Andersonand I hope their wisdom helped to explain how this law works in the face of real world business challenges.
This post takes us one step further on the Go-Giver journey by exploring Law#2 – The Law of Compensation, which tells us ‘Your income is determined by how many people you serve and how well you serve them.’
So, where Law #1 tells us to give more in value than we take in payment, Law #2 tells us the more people whose lives we add that kind of exceptional value to, the more money with which we'll be rewarded.
In The Law of Value post we referenced an accountant to illustrate how this law works. We also posed a question - would it matter if the accountant simply completed the task and got paid for it without having created any additional value? Let's consider that as we review the impact of our value focused accountant.
In that example our accountant did a terrific job of giving more in value than she took in payment. If you were a client, the chances are you feel really good about your accountant. You'd do business with her again, and you'd refer her to others.
The chances are also good that her other clients feel the same way. So, by walking in her value, by giving her clients an experience and a result that was beyond their expectations our accountant is very quickly amassing what we call an “army of personal walking ambassadors.” And, as she continues to add that kind of exceptional value to the lives of more and more people, her income will continue to grow.
So the key here is; the value is the building block, but just providing great value in isn't enough for you to make you a great income because if you only serve one person the chances are you're not financially going to do that well.
It's also a matter of reach, which is where law number two comes in.
In The Go-Giver story by Bob Burg and John David Mann one of the characters, Nicole Martin a school teacher turned entrepreneur, tells Joe that “The first law determines how valuable you are; that is, it describes your potential success – how much you could earn. But it’s the second law that determines how much you actually do earn….To put it another way, your compensation is directly proportional to how many lives you touch.”
So we can sum up the first two laws, in a sense, by saying, exceptional value plus significant reach equals very high compensation.
The Law of Compensation means that a key part of your role in sales is to continually find more people to meet. Note how we said people not prospects. It’s always important to remember that you are engaging with real life, flesh and blood people, not prospects. In our second book Go-Givers Sell More Bob andJohn explain the dictionary definition of prospect is “The possibility, likelihood or mental image of a future event.” As long as you’re seeing someone as ‘the possibility of a future event’ you’re not seeing the real person.
As you seek to apply The Law of Compensation by meeting more and more people we urge you to do so with a view to creating an experience of value that has a positive impact on their lives, not simply to sell your product or service. Remember money is an echo of value. It doesn't matter what you're in the business of 'selling'. High end IT solutions, professional services, financial advice or maybe Ice Cream! Focus on the value and the money will come.
How are you building your own army of personal walking ambassadors?
Ian J Lowe is the CEO of Go-Givers Australia, a sales transformation, coaching and consulting organisation offering a unique culture-defining philosophy and framework that makes giving value the cornerstone of a refreshingly open and authentic approach to selling.