Really? Doesn’t my formal college education matter? Or whether or not I have an MBA? Could the simple economic principle of supply and demand really dictate how income is earned in America? Let’s take a look inside at what you desperately need to know if you want to earn more money in your career.
I’ve been practicing financial advising for over 23 years and the people who truly build up extremely high level of incomes typically fall into three categories:
- Business Owners
- People who rise in companies for staying in the same place more than 10 years
What does this have to do with earning income?
Well, there are certain skills in business that are trainable and certain skills in business that are learnable. Gaining a keen understanding about which ones can make you money and why will dictate whether you too are successful in making lots of money.
THOSE EARNING UNDER $100,000
The lowest general form of earners are those that are at a clerical or task level. Generally, these are low five figure earners. Although someone such as a receptionist can get really good in their job, there is a definite ceiling on how much income they can earn because replacing them is relatively easy. You may not get the same quality, but the barrier entry is fairly low.
The next level of earners are those that have basic management or administrative skills. Take the person who works at the mall that got promoted from jean folder to store manager. While being a store manager requires more skill than the jean folder, being a store manager will typically leave you in the mid five figure level of income. It is not as easy to replace as the jean folder, but still replaceable within a short period of time as the barrier for entry is just a tad higher.
The last level of earners under six figures are those that have a high degree of technical competency such as an engineer or a staff accountant. These professions allow for someone to get up to a high five figure level, but still tough to crack six figure unless you stay at the same place for a long period of time or get into management.
So, the BIG question is WHY?
It’s SIMPLE. The magic invisible line is called REVENUE. What the law of supply and demand inherently does is reward those income wise who can produce revenue for a company. This is true for both large and small organizations. Everyone else is simply an expense sucker.
This means that you have three big skills to learn if you want to really grow your income. The first being sales. Many people say they hate the idea of sales, but the truth is that sales drive top line revenue. And top line revenue (especially recurring revenue) is very valuable to a company and its shareholders. Consequently, salespeople that can bring in good high quality sticky revenue will get paid.
The second is the world of entrepreneurship. Entrepreneurs get rewarded income wise greater than salespeople because they have to take on RISK. Anytime there is risk involved the reward premium will be higher. This is why business owners are some of the most highly compensated in the world.
The highest paying job in America by far is that of marketing. It’s the skill that brings in new clients to a company. There is no job that pays higher but it is also far more difficult to learn than any technical skill. Think about this. Someone like a top athlete like LeBron James or Tiger Woods will make in the nature of $30,000,000 to $40,000,0000 less in salary doing their job than they will earning money in endorsements. And, they are the best at it in the world!!!! Nothing, and I mean nothing, pays more in this world than knowing how to bring in new customers.
It’s that simple. You may disagree or agree, but what you will earn in your lifetime (unless you stay in one place for a long period of time and let natural attrition work) will be strictly dictated by the law of supply and demand and what skills you learn. Anybody ready for a marketing class?