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How To Get Paid More: The Ultimate Formula To Increase Your Value (And Earn More Of What You Want)

The Value-to-Paid Framework

Author

Peter Giordano III
April 13, 2023

Welcome to the Impact Thinking.

Hi, I’m Peter. I’ve run a one-person strategy consulting company since 2019. Before that, I worked in finance & strategy at Harvard. This newsletter helps you become an impact thinker. Ditch the noise, spot the signal, and think with impact.

Read time: 3 minutes

How To Get Paid More

You are paid relative to the value you provide.

Whether you want more money, access, or status, this is the ultimate framework you must use to increase your value.

Value is the product of these factors:

  1. Scale of the problem

  2. Intensity of impact

  3. Speed of the solution

  4. Friction to implement

  5. Duration of impact

  6. Depth, speed & clarity of communication

The higher value you provide for each factor, the more you get paid.

Scale of the Problem

What is the size of the problem you solve?

The bigger the problem, the more you get paid.

  • The lowest value is solving a problem that helps one person.

  • The highest value is solving a problem that helps everyone.

Example: Installing a software system for a 10,000-person organization is more valuable than a program for a 2-person business.

Intensity of Impact

What is the level of pain or pleasure associated with the problem?

The higher the intensity, the more you get paid.

  • The lowest value is acute pain resolution or pleasure creation.

  • The highest value is extreme pain resolution or pleasure creation.

Example: Fixing a broken arm is more valuable than removing an eyelash from your eye.

Speed of Solution

How long does it take to solve the problem?

The faster you develop and implement the solution, the more you get paid.

  • The lowest value is to solve a problem slowly (not in your lifetime).

  • The highest value is to solve a problem quickly (immediately).

Example: Solving universal sustainable energy today is more valuable than in 100 years.

Level of Friction

How simple & easy is it to implement the solution?

The simpler & easier the solution, the more you get paid.

  • The lowest value is a complicated solution with high effort.

  • The highest value is a simple solution with low effort.

Example: Pressing a button once is more valuable than having to press it repeatedly.

Duration of Impact

How long does the solution last?

The longer your solution lasts, the more you get paid.

  • The lowest value is a solution that lasts today.

  • The highest value is a solution that lasts forever.

Example: Curing a disease forever is more valuable than mitigating the symptoms of today.

Depth, Speed & Clarity of Communication

What is the depth, speed, & clarity of the communication (regarding) the problem & solution?

The deeper, clearer, and faster (delivery), the more you should get paid.

  • The lowest value is transactional, unclear, and delivered slowly.

  • The highest value is insightful, crystal clear, and delivered quickly.

Example: Helping someone find purpose is more valuable than a sending a reminder 1 minute before an oil change appointment.

If you want to get paid more, increase each of these factors.

Or find a new problem to solve.

It’s time for you to think critically about the value you provide.

Value =

[scale of problem] x [intensity of impact] x [friction to implement] x [speed of solution] x [duration of impact] x [depth, clarity, speed of communication]