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Make the Law of Compensation Work for You

Agents achieve the greatest rewards by establishing positive and purposeful habits.

by David Ibarra
December 12, 2023
Make the Law of Compensation Work for You

Compensation can include other forms of value besides financial ones, such as recognition, prestige or other benefits.

Credit:

Pexels/Sora Shimazaki

3 min to read


There is a basic principle in business and in life that seems to function without fail: The amount of reward a person receives is directly proportional to the value they create for others. Ralph Waldo Emerson explained this universal force in his essay, “Compensation,” in which he wrote that each person is compensated in a like manner for that which they have contributed.

Simply put, you will get back whatever you put in. Good or bad, you will receive the rewards or penalties of your thoughts and actions.

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Within your agency, you strive to increase sales and generate recurring revenue. As you increase your personal value by establishing positive habits, focusing on input, and defining your purpose, you will subsequently boost your compensation.

Establish Positive Habits

Since success is the result of consistent effort over time, your energy should be focused on developing positive habits. Habits provide a framework for maintaining consistency and discipline in pursuing your goals. When you take charge of your thoughts and actions and they are repeated intensely and frequently, they’ll become a habit.

As humans, we are ruled by habits as they are adopted through the repetition of thoughts and experiences. We can control our destiny if we control our thoughts. If you choose to focus on habits that increase your value, you will be compensated with increased rewards.

Define Your Purpose

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Preparing for success starts by defining your purpose and setting a clear goal. Write out a complete and clear statement of your goal, sign it, memorize it, and repeat it aloud at least once every day. Conditioning your mind through repetition activates the subconscious, which influences your beliefs, attitudes and behaviors.

When you vividly imagine yourself succeeding, your subconscious mind accepts it as a reality. By defining clear and meaningful goals, you provide yourself with a roadmap for success and increase your motivation to take the necessary actions to achieve them.

Focus on Input

While it is easy to get wrapped up in the end goal, it is essential to strike a balance between input and output.

Emphasizing the input and viewing the work as a reward in itself helps encourage a proactive and growth-oriented mindset. By focusing on the efforts we put in, we increase our chances of achieving meaningful and sustainable success. Placing emphasis on input rather than output promotes intrinsic motivation.

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When we gain satisfaction and fulfillment from the process itself, we are more likely to stay motivated and committed, even in the absence of immediate external rewards or recognition. This intrinsic motivation fosters long-term dedication and perseverance.

The law of compensation emphasizes the importance of creating value for others in order to receive a proportional reward in return. By understanding the needs and desires of your customers, you can deliver products or services that meet those needs, which increases your likelihood of success and financial gains.

While the law of compensation generally applies to financial rewards, it's worth noting that compensation can also include other forms of value, such as recognition, prestige, or other nonmonetary benefits — all things we strive to attain within our agencies, as well as our personal lives.

David Ibarra is a managing director for Portfolio, a leading provider of reinsurance and F&I programs, and a nationally recognized leadership consultant, entrepreneur, speaker and author.

Originally posted on Auto Dealer Today

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