Most people think about the value of their time as being worth whatever they can trade it for right now.
They think that if someone’s willing to pay $50 for an hour of their time, then it means value of their time right now is $50. If someone is willing to pay $250/hr then they think the value of their time is worth $250. Even if someone is willing to compensate them at $1000/hr, they consider their time to be worth $1,000. Doesn’t sound too bad, right?
But there’s a bigger picture to this—yes, even bigger than $1,000/hr.
By thinking about the worth of your time in terms of what it can be traded for immediately, you devalue the true worth that can be realized over time.
Your time is worth what it is now because of investments that you made a long time ago. The amount you’re making now is actually indicative of the value of the time you put in way back.
Your time a year ago was worth what you’re getting paid now.
I want you to really get this: The value of your time now is determined by what you could be making in the future if you invest it wisely.
What you’re able to make now is a reflection of the value of your time one year, two years, or three years ago.
Your time is worth more than what you’re currently making. Let me say that again:
Your time is worth more than what you’re currently making.
It’s worth what you’ll make in the future if you invest that time rather than convert it.
“What do you mean invest rather than convert?”
When you convert your time or trade it for money, the value you get from it is limited.
For instance, an example of trading my time for money would be consulting. Trading my time would look like consulting with someone for $1,000/hr.
That might sound like a lot, but here’s the question you need to ask when determining what your time is worth:
- Can you provide that much value for somebody in that amount of time?
Once I started thinking this way, once I start thinking about the value I could generate, I immediately knew that it was appropriate. Could I generate $250 of value for someone in 15 minutes? Absolutely. No question!
Once I did the math, it all started to make sense. In fact, the value I could generate for someone from a 1-hour consultation would be far beyond $1,000.
But here’s the thing: it’s still trading time, not investing time.
I want to talk about thinking BIGGER than $1,000/hr.
Thinking Bigger Than $1,000/hr
I could spend that hour generating $1,000 worth of value for someone, but what if I could spend that hour investing in my own business creating a 5-figure difference in my bottom line over the course of a few months.
I have a hand lettering class called Learn Lettering that you’ve heard me talk about. I make sales every day from people that come to the website, but there are also people who aren’t sure yet or aren’t ready to buy.
To capture this interest, I have a signup box. When they signup, they get my introductory lettering guide and 2 free video lessons over the course of a few days.
The thing is, there’s only 5 emails in that autoresponder right now. I merged my email lists a few months ago, but in the past few months since then, there’s now nearly 8,000 new people on that list.
That’s 8,000 opportunities! Now, certainly some of them were convinced to buy after 5 emails and that’s why I have sales every day, but no doubt the vast majority haven’t bought!
Maybe they signed up and were busy that week. Maybe they missed the emails. They signed up, but there’s nothing else. There’s nothing in that pipeline—that autoresponder series that’s selling people that aren’t yet ready. Now I’m no longer sending automated emails to them. They’re on the list but they’ve completely forgotten about me.
If I sent more of those emails and filled the pipeline, I would convert more prospects.
Back to that hour. Remember the hour that I could charge $1,000 for? What if I spent that hour writing several more autoresponder emails? What if I could write 4 or 5 more emails that converted an additional 2% of the people on that 8,000 person list?
2% may not seem like a lot, but 2% of 8,000 is 160. My Learn Lettering Master Class is $299. 160 people times $299 is $47,840.
Now what do you think about the value of that time?
This is the difference between trading time and investing time. The value of your time now is determined by what you will be making one year, two years, or three years from now.
Charge for it accordingly, and invest it wisely.