Top Producers are ALWAYS Teaming for Compounded Interest

Top Producers are ALWAYS Teaming for Compounded Interest

Albert Einstein is said to have stated that “the power of compound interest is the most powerful force in the universe.” Compound interest is the addition of interest to the principal sum. By reinvesting interest, the base grows larger and when that base grows again by a percentage, the amount of growth is compounded. Bankers and financial planners will regale you with examples of fortunes made by pennies saved over time, thanks to the benefits compounding interest. In this blog, you’ll see how leaders and other top producers produce amazing results by using the formula for compounded interest in their lives—at work and at home—for amazing success.

What’s the formula for compounded interest?

To make compound interest work, you’ll need the following:

  • A base sum: Let’s say $1,000
  • Time: Day traders notwithstanding, that $1,000 must be given time to grow.
  • Growth: Not every investment grows.  See the New York Stock Exchange, any day of the week. With growth, let’s say that $1,000 yields $100.
  • Reinvestment: Instead of spending that $100, you reinvest it.  Now you have $1,100—a larger base to grow from.
  • Repeat: Now you have a larger base of $1,100.  And by taking more time to grow, and reinvesting those yields, the sum gets bigger, and bigger—into infinity.

Why Leaders and Top Producers Should Love Einstein

Einstein saw compound interest as a magical force that created morphing, geometric growth.  While this force works with numbers and money, it works also for leaders and top producers who are striving for amazing results.  To figure out how to use this formula, answer the following questions.

What am I trying to compound?

Money! Of course! Not so fast.  Leaders and Top Producers are, of course, always striving to compound their financial returns. However, the most strategic and adroit among us realize that the greatest amount of success comes when Greek systems for profitability are created and compounded. Successful people apply the same formula to their families and to their health. For example, investing time with your significant other or your children can create a positive, compounding effect that even Einstein would be proud of. It also works with your health. Continuous investment and reinvestment into your physical and even spiritual well-being will produce cascading effects for yourself and others. Yes, let’s make more money. Let’s be thoughtful about what it is your life needs to be compounded for you to be happy and successful for the long-term.

Who’s on my team? 

If you consistently work with the team, it’s important for everyone to engage in the aspiration of trying to compound your positive results. If you don’t have an unofficially assigned team, find one. High performing sales professionals will join groups that will share leads, share strategies, and stay connected. High performers also participate in training and get coaches. The value of the team or a coach is that they can help you to learn to critically reinvest your successes to ultimately compound your desired results.

What’s my base sum? 

With the money example, you started with $1,000.  You committed to keeping and nurturing that base amount. Leaders and Top Producers need to know their base as well. Your base might be skills that you’ve developed, the progress you’ve already made, or even habits that consistently make you a Top Producer or even a healthy person. Those healthy and successful habits or assets are just as valuable as money in the bank. They become the basic elements that you work with to grow. In so many instances when working with clients I’ve coached over the years, mind-blowing momentum is created in many cases by simply expanding on some of the most basic and fundamental elements of the current levels of success. Find your base, and then harvest the rewards.

Do I have the “time”?

In this case, time refers to several things. First, most successes for Top Producers and leaders don’t happen overnight. Even though they may realize some rather instantaneous momentum, in most cases, they recognize that seeing their progress over a longer period of time ultimately serves them quite well. Time can also refer to how long you might have devoted yourself to the accumulation of new skills and abilities or strategies. For example, if you are a sales professional and you have adopted a strategy for creating more authentic market records, you may find some immediate success. It may show up in the first six days of implementation. And then, in six months, you continue to see progress. In six years you will have transformed your business and your life. The same can be true for an exercise regiment, or a renewed expectation for how you spend your family time.

How do I define growth?

Top Producers and effective leaders measure growth differently than those who are less successful. For them, it isn’t just the immediate bottom line. While tracking financials and rates of return are absolutely necessary, in some cases, the greatest growth comes when thoughtful Top Producers recognize a habit or strategy that isn’t working and abandons it. I was coaching a sales professional several years ago who was achieving strong quarterly growth financially, but realized that there were a number of things he wasn’t doing that were keeping him from being successful. For him, a three percent quarterly growth rate was unacceptable because he had a higher standard for himself. For him, that three percent growth rate per quarter was a sign that it was time to readjust his approach and grow even more. With yet another client, we actually celebrated a rather significant business failure. Why? Because for years she had been calculating that this approach would work for business. After a thorough implementation, she discovered she was wrong. This led eventually to the embrace of a much better strategy for growth and improvement. We celebrated the loss because it led to her growth.

Am I reinvesting? 

One of my favorite inquiries in my coaching practice is to ask my clients about their current wisdom.  “What’s the secret to your success?” is something I like to ask, often requesting an immediate response without overthinking it. In many cases we’ll discover is that leaders and top performers know deep down what it is about themselves and their business that works. However, for reasons I won’t articulate here, we often fail to reinvest that knowledge. We fail to apply what we already know and to improve upon it. We fail to share a critical piece of wisdom with other members of our team that would allow them to grow as well. As a result, it’s almost like earning that $100 on your $1,000, and choosing to spend it instead of reinvesting it for a compounding effect.

In this blog, I hope I’ve inspired you to use the wisdom of Albert Einstein, and the momentum of compound interest to help you become a more effective performer and leader. I also would encourage you to get training, get a coach, join a team, and work together to compound the positive impacts you strive for in life—be it your money, your habits, your health, or the spirit and well-being of your family and those you love.

Transform today.

 

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