The Multiplier Effect — (Read Time: 4 min.)

I have a theory, and maybe this is nothing new, but in either case the name of my theory is called The Multiplier Effect.

The Multiplier Effect assumes that there are two different kinds of actions any individual can take. One action type has positive growth and rippling effects and the other type does not. The former is like pushing one domino which results in a hundred other dominos falling forward as a result.

For example:

1) I decided to cook dinner for myself. I spend 30 minutes preparing the food and after I have eaten my hunger is satisfied.

2) I decided to hire someone to prepare all of my dinner meals for me. I save 30 minutes every single day and I am now able to reinvest this time into being more productive or some other leisure pursuit.

Number 2 is an example of the multiplier effect in action because with one decision I effectively add an extra 182 hours of extra time to my schedule every year.

This theory has more significant implications for conducting oneself in business.

For instance, say I am a in charge of business development and sales at a start-up or an established company. I earn a small salary plus commission for my performance.

1) I can go out and network and cold call and sell, sell, sell. One sale here, another sale there. Before I know it, I’ll be on a roll, bringing in 10 sales a month on average.

2) I can sign partnership agreements with other companies and individuals which reward them for passing referrals to me or directly reselling my company’s products and services. Before I know it I’ll have 5 partnership agreements in place, each bringing in 8 sales per month and I don’t have to hustle so hard to drum up leads.

Number 2 is clearly the more optimum choice and a great example of how one can apply the Multiplier Effect in business.

The lesson of the Multiplier Effect is little more than learning to distinguish between productive decision options: one the one hand you can get something done, but other the other can you can get it done at an increasing efficient and productive rate far into the future; one option plateau’s in value while the other scales in its level of benefit over time.

Which would you choose? 😉

BONUS self-promotional example:

I write an email newsletter. Using SaberBlast.com I can simultaneously publish and promote my content to Facebook, Twitter, and LinkedIn at the same moment I hit “send.” This feels awesome and helps me save at least a few minutes each time I do it.

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