There is such a thing as a personal contract threshold in marketing. This is the maximum amount you have sold for at one time. For example, a company has been selling sites worth 70-80 thousand dollars for a long time. Evaluating their work for 100 thousand dollars and creating something as fantastic as a TonyBet login site or Amazon is a task with an asterisk. Often we don’t even think about the fact that our “average check” and price for services can be increased.
Suppose one of the managers of the company will take a risk and sign a contract for the development of a site worth 100 thousand dollars. Cool? Of course it is! Colleagues will immediately realize that 80 thousand dollars isn’t the limit, and will gradually, gingerly increase the amount of transactions. Will any of them try to conclude a contract worth over 100 thousand dollars? It’s unlikely! This “record” is psychologically difficult to overcome, and most likely, the company will be stuck with this amount for a while. The higher the amount, the harder it is to move on.
The same mechanism applies to forming a personal income threshold.
What Is the Personal Income Threshold
This is the amount that we agree to live on a monthly basis. For example, someone gets $30,000 a year, someone gets $150,000, someone gets $500,000, and he adjusts all his expenses to this amount.
At any of these amounts, people may argue that they don’t earn enough and need more. But they can’t get more than the amount they psychologically agree to. Either they make no effort, or that effort is insufficient, or the same effort is made month after month, but for some reason people hope for a different result.
This is where courses come in their way that will “break the financial ceiling”, help them “earn the first million” or tell them the secrets of “Ilon Musk’s mother”.
But we both know that no course or training won’t become a magic pill. But clear work on the plan, work with self-esteem, effective coaching (even though it’s not easy to find) can help!
Let’s take a look at how this “limit” of earning is formed.
What Forms Our Personal Income Threshold
It’s banally simple-just two areas of life that we, by the way, have the most direct influence on!
Let’s mentally calculate how much we need for the mortgage, child care, groceries, utilities, and other payments – and then the minimum program becomes a maximum program. The brain is a rather lazy organ. When it understands that this amount is enough for “comfortable survival”, it stops at it. If, after these simple calculations, there is still money for movies and popcorn, then many, very many people think they are making good money.
When we make $50,000 and our friends make less, why not consider ourselves a winner? Of course, we are exaggerating a bit, but in such a comfortable environment, where it’s easy to put yourself on a pedestal, the belief is formed that life is good, and there is no point in changing anything.
Nowadays there is an abundance of courses and psychologists who work with income limiting beliefs, but do they suit each of us or our employees? If psychologists start explaining low income by the unworked father figure in the psyche, the 7 generations effect and other “long-lasting” reasons that affect us, it’s very easy to give up. When someone doesn’t want to dig into their own childhood, are they doomed?
How to Swing the Personal Income Threshold
We all want to find specific and quick methods that work here and now and don’t mess with our heads or our team.
Generate Bids at 1.5 Times the Price
Take the cost of your average bid and multiply by 1.5. Done. This is now your starting price in negotiations. If you think this is too steep a jump and the customer will leave you, work on your reasoning and start small – with a bid of 1.1 or 1.2 times higher. Try to make each subsequent contract a little more expensive than the previous one.
Prepare a Tangible Goal
Think about a simple tangible goal that you would like to achieve. Only we beg you, do not need here SMART and certainly a collage of desires. Just have the answer to the question, “What do you make money on?” in your and your employees’ heads. Try to remember before a call or meeting what you’re increasing the check for, and the meeting or call will go better than without that reminder.
“Play Around” With the Numbers
Think about the amount of money you can be perfectly comfortable with as income each month. How does that feel? That’s right, nothing! It’s not motivating. Now double that number. How does it feel? If that number is still in your comfort zone and you don’t feel a little trepidation or anxiety, go ahead. Try putting a zero at the end of the sum. How does it feel? Maybe another zero? Your “threshold” will increase as you “grow” to a new upper limit.
Figure out Your Expenses
Break down your monthly income into expenses, taxes, savings and lifestyle purchases. When most people do the exercise, they realize that they actually want to earn more than they currently do! The more specifically you can identify what else you need for a happy life, the easier it will be for you to increase your value.
If your income covers all your immediate needs, increasing your personal income threshold is difficult. Being content with little isnt bad, but it prevents you from being able to afford more. Don’t be afraid to try to increase your spending. Until you know exactly how the extra money will be used, you will probably be standing still.
Appreciate the Time
Remember the importance of your environment? The more accurately you prioritize, the less time you will have for those who “help” you stagnate. We don’t mean to say that you can trade friendship for money. But here’s a refusal from an exhausting meeting with an old friend or from business negotiations that you are not interested in. It will be easier, and, accordingly, you will have more energy to increase their sales.
Increase Your Value
We often write about the added value of products, about the importance of packaging and hidden meanings. But the same can be said about your value as an individual! Develop yourself, offer more than your competitors. Write down your list of 50 qualities that make you different, attractive or noteworthy. It will be difficult at first, but when you’re done, you’ll have fifty arguments why you can and should earn more!