Why You Should Pay Yourself Less
Pay yourself less so you can earn more later.
There was a point a few years ago when I was turning over millions of dollars in the business and I literally paid myself a humble electrician’s wage of $70,000 a year.
Here’s why: it’s more important to keep that cash in the business bank account so that you can use that for research and development (R&D) on things that help you increase your leads and conversion rates.
- Marketing strategies
- Advertising strategies
- Lead generation
- New tools and systems
- New apps and CRMs.
Stop trying to pay yourself those big bucks because you started making more money. Keep it in the business and pay yourself a humble wage – enough to get you by. Do your math, work out what your budget is, how much you need to survive. Then keep that money in the bank account pushing R&D.
And with a pool of cash, you’re free to save on expenses in other areas like buying bulk. Instead of buying one item, buy 10,000 items at 10 percent less (because you’re buying in bulk).
Pay yourself less and keep the money in the bank account so you can use it for long-term growth in the business. It’s going to pay off ten-fold.