At the start of every project, the scarcity mindset will destroy your perceived value. Will you loan a dollar to a businessman or a bum? There is a part of us that thinks poverty is contagious. We want to flee from people who are desperate.
If you are broke, people know they can get away with paying you nearly nothing. People see weakness and they think about the money they can save. If you project that you are busy and successful, the same client will pay you more.
The post SNM007: The Scarcity Mindset is Killing Your Business appeared first on Serve No Master.
Connect with Jonathan Green
At the start of every project, the scarcity mindset will destroy your perceived value. Will you loan a dollar to a businessman or a bum? There is a part of us that thinks poverty is contagious. We want to flee from people who are desperate.
If you are broke, people know they can get away with paying you nearly nothing. People see weakness and they think about the money they can save. If you project that you are busy and successful, the same client will pay you more.
The post SNM007: The Scarcity Mindset is Killing Your Business appeared first on Serve No Master.
Connect with Jonathan Green
speaker 0: 0:00
the scarcity mindset. It's killing your business. Today's episode is brought to you by social pilot. Automate all of your social media presence from a single, easy to use dashboard to find out how much time you can say with a simple tool. Head to serve. No master dot com Backslash Social pilot Are you tired of dealing with your boss? Do you feel underpaid and underappreciated? If you want to make it online, fire your boss and start living your retirement dreams now then you've come to the right place. Welcome to serve no master podcast where you'll learn how to open new revenue streams and make money while you sleep. Presented live from a tropical island in the South Pacific by best selling author Jonathan Green. Now here's your host. Every time you start a business deal, interact with someone start a project. You go through this little negotiation phase where people try to figure out how much money to pay you. What percentage is to give you all the different things for every different type of project, and when you have the scarcity mindset, it can destroy your ability to make any money nobody wants to do business with someone who's not already making money. We have this pre programmed into us if you are in a gas station and the guy in front of you was wearing nice. So you saw him drive up in a nice Mercedes or BMW, and he's a dollar short or whatever is paying for and turns Jones's. Hey, can I borrow a dollar? You're probably gonna give it home. You're definitely more likely to give it to him. Then, if the guy in front of you is a dirty homeless guy who's paying one penny at a time for a bottle of alcohol middle of the day, we're more likely, and we're programmed to give money and give favorite to people that don't really need it. And people that really d'oh, we respond to lack by wanting to pull ourselves away. There's a part of us programmed into us, even if we don't want to admit it. That worries desperation, lack and scarcity are contagious. So if you go into a project and you project the scarcity mindset, it will keep people from hiring people under pay you and it will affect all of your projects. For example, you decide to get into a local resulting type game. Maybe you're helping people with small businesses in your area with search engine optimization or you're running Facebook advertising for them. You're helping them run their social media campaigns. Any of these types of things where you're helping small physical businesses deal with the Internet in ways to grow. You go into your first meeting and you want to get hired. If you say, Hey, this is my first meeting. I've never had a client before, but I really, really, really need this job because I really, really need to pay my rent tomorrow. They're gonna pay you so low if you even get the job. The first thing is that they might not even hire you when you sound so desperate, like men. This guy so desperate must be terrible. I have no idea what he's doing. But if they still decide to hire you even though you've already demonstrated your scarcity minds at your desperation, they're gonna pay you much, much lower than you want. When people see weakness, they see the opportunity to pay you less. But if you go in and say, Look, I only have a few minutes. I've got six more client meetings today. I can't believe how busy. And I'm so exhausted they're gonna pay you a lot more than all this. Guy's the best cause then what else wants him? You have that mindset when you project success? Well, opportunity that you're busy have all these things going on. People respond completely differently. So in the small things in these small negotiations, you always want to act like give other things going on. The reason I got my job at the university, the last job I've ever had working for someone else that I was horrible Underqualified for I went into this meeting for a job that they had an advertised anymore, doing something I'd never done before. I always just been a teacher, and now they're had a position for administrator in charge of like five or six other teachers running this program kind of organizing the program. Liaising it was a lot of admit is only teaching one class a week. So instead of teaching full time now, I only teach just one class just enough to say, Yeah, I'm still a teacher as well. And I went into that meeting with a different mindset instead of thinking I really need this job. I went in thinking they're so lucky. I even showed up and acted like it had this mindset of man. I have so many job opportunities I could teach anywhere in the world are lucky I'm even here. They offered me the job. They offered me a certain amount of money. I said no, I need more and they even give me a higher number than they were originally gonna offer anyone for this job. So the minds that I had was the exact opposite of that scarcity mentality instead of thinking, Hey, I really need this other Hey, man, there's tons of jobs come away and I totally faked it. It was an artificial projection, but it's what I do when I go into every meeting. It always act like I have everything I need. If you act like you need money, if you act like you are desperate, it will affect the way other people treat. If you come to someone and say, Hey, I want to write a book for you and they know that you need money to make Rent will pay $500 to pay her rent. But if you act like you're serious player, you point out books all the time. You're very successful. Then they'll give you a percentage so you could end up owning 5 10 20% of a project and over time is worth 102 $100,000. But you act desperate. If you demonstrate that lack, you're only gonna get $500 so it really makes a difference when you're doing any type of negotiation. The next problem with the scarcity mentality is that will affect how you approach projects, how you approach your time. When you get really worried about money or you think there's not enough jobs at their list things, it will affect the way you think all the time. It's very distracting, so you'll be constantly worried. Instead of taking actions, you need to get the finances that you need you'll be thinking about Oh my gosh, I don't have enough. I don't want to do I'm so stressed out It becomes this little cycle that affects your thinking and really hurts you. When you're trapped in this mindset, it makes it very hard to focus on anything else because all you think about is what you need, what you don't have and whether you believe in the lobby, attraction or law, prosperity or any of these other very popular but a little bit Far Eastern mindset. These ideas that you need to become connected with the universe or Jersey Well, there is something repellent about someone who has a sense of desperation, someone who has this scarcity mindset. And it's not just about business. If you watch people in relationships, have you ever noticed? Especially if you're a guy when you're single? No one's interested but assumes you have a girlfriend. Other women become interested again. That's because you no longer have the scarcity of minds that you no longer thinking, man. It can't get anyone. Now you have someone for you, Relationship ruined, the no longer scarce. And that's why we react to you more. In every area of life, people are drawn to success. People are drawn to people that are doing the right thing and don't need them. We want to be with someone who doesn't need us, but who appreciates us as you're starting your business as you're moving for their endeavors. I want you to start thinking about the mindset of success. I don't have a perfect day every day, not every day, for my business is perfect. I have ups and downs just like anyone else, right? Sometimes I work on a project and it falls through. It happens. Sometimes I'll start writing a book, and it's just not good. This doesn't happen a lot, but it does happen. And I want you to realize that we have those bad days or when a check doesn't come through or something goes wrong. It's very tempting to follow the scarcity mindset. Even now, if I have a really bad day and I start enter negotiates, you're talking to someone I always speak in. Act from a position of strength because when you show weakness, when you start making decisions from the scarcity minds that it could become permanent. For example, if you take a really low paying job because you really need the money, that person is never gonna hire you at a higher price point. You're now locked into that relationship at a lower price point and they start bringing you their friends or recommendations because you're so cheap again you're locked into a lower price point so you can get locked into a price point that you're not very happy with for a long time. One of the mistakes that I made a very long time ago I would take on clients when I just needed the money because I was controlled by my scarcely mindset is that I need this money. I would take clients that I would regret later on. Hey, I really need a rent. I gotta pay off a credit card when you got money chasing you. Whenever you have financial situation like that, it will affect your decision making process. You make these decisions that later on, you realise, and the long term really, really hurt you. And so I would take clients that I had a bad feeling about. I'll take clients that I knew wasn't that project I want to be working on. I would take clients that I thought were acting a little bit weird, and I would adore these red flags. But yeah, I know it's gonna stuck working with this guy, but I need the money. That's the conversation to have with myself. That's a scarcity mindset conversation. The only reason you would take a client when you need the money that you don't, but it's a client you don't want is because you don't think there's more clients around the corner. You don't think it's more opportunities. And I have discovered that you invest in his relationships and they cost you in the long run in time and money and lost opportunity. So when you tell him to start working with a bad client or someone you think is not really great client, they're paying too low. You spend all the time working on that project. That's time you could have spent finding connecting within getting hired by higher ticket client. It's not just that you need money right now. It's that you make this decision because you don't think you could find other client as quickly as you need. And you get caught up in this relationship that starts stealing time. And I've learned that really low paying clients tend to take the most of your time. When I was selling search engine optimization, what I had, you know, 10 or 12 clients on the go at some clients that payment $500 a month in Southern paying 2 to $3000 a month, and the $500 among the clients would take up more of my time than the high ticket clients. They would call me more often. They would be more stressed out than be more has to, because they also had the scarcity minds it often it was their last $500 a month. They really couldn't afford me, and their behaviour would demonstrate that that would be in this situation where I'm always trying to client manage, and it's a huge amount of time sex. So some of those clients would call me one hour every day for an entire month such 20 hours a month that has been on the phone with them. Where's my client spending thousands of dollars? Well, talk to me for five minutes a month. Some of them would only talk to me every three months. So when you think about how much time the mindset of desperation can take from you, it's huge. You end up taking out clients you shouldn't take. You end up starting relationships you shouldn't take. You start taking paychecks in a way too low and against you stuck in the situation Now I know sometimes you just need to make money. And so you have to make these decisions on your own. I can't tell you to never take a job you don't want because I have friends that do that. Do I have friends that get so pretentious about their income stream? That's a hair won't take any job worth less than this. And then they spend years without working. You don't want to go too far in that direction, too. You want to find a balance in the right balance for you? It's gonna be different than it is for everyone else. But just be aware of the danger of being too desperate. But there's also the bill to be realistic. It reasonable, you know. Okay, this is what people paying right now. I have worked here a long time. I've turned out 17 jobs in a row. Maybe I need to realize, Hey, the market rate isn't what it thought it was. Or my skill isn't worth as high as I thought it was. You want to find that balance? You don't want to be so far for the scarcity mindset that you won't take any job for years. We also don't want to be taking jobs that are paying too low because you're desperate. So find that balance for you and just pay attention to the correct path for financial success. You want to be always negotiating from a position of strength you want approach every opportunity for a position of strength. That's why I don't advocate quitting your job. I know some people say, Hey, you gotta quit your job right now. You gotta burn the boat to put yourself out there. The problem is that creates the scarcity minds there because you have to make money fast in order to make that first paycheck to make your rent, to cover your mortgage to pay a car payment. I don't want you to start out that desperate. Yes, for some people, that's a very civilised way approach. That's what happened to me. I lost my job. I had no choice. I had to pay rent on the apartment at bay on my brand new car. I was caught with his two big payments that were chasing me that did work for me, but man was so tough and so painful to always be scared and always have that thing chasing you. Some people are motivated by having fear behind him. Instead of having goals and amazing this and wonderfulness in front of them, we move away from fear and towards success or towards love. I don't really think you need to start out in a place of desperation fear, because I see that it forces us into making decisions related Ron Regret. Instead, we want to slowly build and go through our phase one phase, two goals before we leave our job behind. You know my friend Bob he talks about, Oh, you shop two years of savings and you should be making double your office income before you quit your job. He's an advocate of having a huge amount of money lined up before you leave your job behind. I don't think you need to do that. I'm not as much of an advocate of being that prepared, but he's a really serious prepare for the future kind of guy, and so it kind of has that mindset, and I totally understand it. He wants you to be in a position where even if everything you were online dies and you leave your job behind you're still OK for the next year or two. That's the most conservative approach to it. But that's why he's never in a position of desperation. He never would have been a 1,000,000 years did negotiate from desperation. We have the scarcity of mine said. We think that there's just not enough job. We don't have enough money. We don't have enough something. We're always thinking about what we lack, and it causes us to infect the rest of our lives with worry, and it makes it hard to get a job done. One of the many things and working on right now is I'm writing this book for a client. It's a little book. It's a rewrite of a book I did a year ago. They completely changed what they wanted to go. Oh, this book is nothing like what we decide. We want to go on a complete different directions, so it's actually creating a whole new book on topic I've done before. Book needs to be 35,000 words. I am so confident about my writing. Sometimes they're right at the start of my day, sometimes at the end of my day, and I just got to do 5000 words a day, which for me is a very soft goal. I could do a hard goal and write 20,000 words a day, which is really hard. That's when I'm pushing myself very hard at the super. Folks can't do anything else, but I don't want it to be the only thing I'm working on. So I'm taking the project slow, and I just have to write for, you know, our half two hours a day to hit my number. And I know the book could be done in seven days of work. If I had the scarcity mindset, my approach would be a lot more stressed out. It'll be very hard for me to focus on the book because I'm sitting there writing whenever I'm worried about something else. I'm sitting there writing and I'm thinking about something else. It will affect what I'm doing. Have ever been watching television, listening music and your writing like a paper for school or something? And then you notice that you wrote a sentence about what you were thinking about what you were watching instead of what you meant to write our secondary thoughts, especially in your writing can actually appear on the page, and you don't want that. You don't want to slow yourself down and cause problems. So what? I'm thinking about something else. If I'm really worried about something, all right, slower, I'll keep getting distracted and it will actually hurt my productivity. So the worry, the feeling of scarcity hurts my profitability will actually affect my income will affect how quickly I do projects in the kind of success I can achieve. The way we're feeling is very, very important. It affects how could we do our job and affects how other people treat us as you're working on your projects as you're beginning to build stuff online as you're thinking about how much money you need to make focus on your path to success, focus on projecting positions of strength. We talked about networking a lot yesterday, and this is where this really ties into that less when you meet someone they're really looking to see and assess you before they decide if they're gonna work with you or build a connection with you. Sometimes people walk up to me and act like I'm a movie star, and they act very strange to me, but they act like a fan. If someone comes up to me and act like a fan and they say, Oh, man, could you just help me? Could you just tell me one of your secrets? Can you just give me some information? I'm such a big fan. That mindset is very repellant and because they're creating a relationship where I'm high in their low, if someone's a fan of me and they act like I'm a movie star, they act like I'm a movie fan within their creating space between us, where I'm high in their low and that affects our relationships. Always think of them that way. Now I talked about how you walk up to successful people is much more about Hey, you're amazing. Let me give you value that's different from walking up and saying, You're so amazing. I'm so nervous around you. Walk up like I'm a movie star is different from walking up and thinking, Hey, I want to do something cool because I like you. That kind of creates that even footing and breaks through that fan barrier. This is why when you meet celebrities and you act weird, react like a fan. They don't ever want to be a friend once you establish yourself as a fan than you have established her position in the relationship. And if you walk up to people with the desperation in your eyes, if you walk up people with scarcity mindset, you let them know. Hey, look, I really need some help because my job is about to disappear. My business is failing. I'm not making enough money any of that stuff. No one wants to help you. Just like we don't give a dollar to the homeless guy in the gas station. People are much more likely to share ideas with you. Give you advice, throw projects to you if they know you're already successful. So when you go to conferences and we do networking, never reveal, even if you are strong. If you're having problems, your business never show that to everyone. Okay, never show your scarcity. Never show your problems. Your desperation. I used to go to a lot of networking events, cause I'm very fascinated by these things I used to go to some conference is they have this force networking thing. It's almost like they do speed dating, but for networking. They put people into two groups and you hop for each person. You could talk to person for three minutes and I would go to these conferences. Every single person I would talk to would have a small business or a little business idea that was failing, and they were desperate for someone to save their business. Every single person at this networking event is looking for someone else to save their business. So there 40 people in room, all with the scarcity minds at all, hoping someone else in the room will magically save them. And that is very repellant to people that are successful. That's why everyone else I know it was there was this one never goes to those things. But I'm always doing research. I'm very curious to see how people are behaving kind of learning more about human behavior, study that a lot of very interested in that. So I'll go knowing that I'm not gonna get anything successful. I don't go anymore. I did it for a while, and I discovered every single time people just project this desperation even when they have a cool invention or great idea. As soon as they project that feeling of desperation no one wants to do. Business is of any more. I don't want to save someone off his business. You don't have to be super successful for me to want to get involved. If you have a really amazing idea, then I'll be interested in working with you. But if you have an amazing idea and this feeling of desperation about you that's gonna push me back when you seen obstacle in front of you, there's really two ways to approach. You can say, Oh, this is an obstacle So I should give up or I can't do this project anymore. I can't work unless anymore. I have to go back to my old job. Or you can see that as an opportunity to demonstrate successor to overcome something. I run into obstacles on projects all the time. Okay, that's reality. There's always new challenges, but I pay attention to how people approach obstacles around me. I don't work with people that are looking for an excuse for inaction. I recently was talking to someone and they wanted to intern with me. They're kind of looking for opportunities, you know, they wanted to buy one of my courses I knew they could never afford was a kid in high school and said, Hey, if you're willing to do a little favor for me, I'll give you access to my very expensive course. My best course I want you to do is watch every lesson to take really, really good note to make Screenshots and make amazingly P D efs like handouts to go with each my training videos and I can use those great notes in those handouts. Put him on my website so that other customers can get more value if you're willing to do a little something for me that I'm going to do that for you. And he emailed me back a list of five questions. Who's gonna provide all the content for the PDS? Who's gonna do this? Who's gonna do that? It was questioning me and kind of created these barriers that I couldn't believe it. I was like, I'll give you my best material if you'll just do something small for me in return, I'll give value first, and his mindset was, there's all these obstacles. He wanted me to do extra work. The whole reason I asked my most together he'll do PDS for me because I don't want I don't like doing the same lesson twice, and I find if someone else creates the PdF, there's a lot more value because they approach it as a learner or as like, a really good student. And create those great notes have, like in college during class, and you get notes from the best student. There was better than notes on the Professor. That's kind of what I was looking for. And he all you saw was obstacles and the scarcity mindset. I'm sure part of it came from his parents. They're trying to see if it was some type of a scam. I don't know how giving someone your product for free could turn into a scam. Whatever they had that scarcity mindset, I never applied to another email from me. And you know what? I don't even talk to people like this if I offer to give you value for nothing in your responses scarcity mindset than it repels me that much. When you're approaching me or approaching anyone else trying to grow your business where they're making a dealer networking, you wanna always project success and confidence. Then people wanna work with you because if you project the scarcity mindset, you'll repel business. You'll repel other people and your repel money. Thank you for listening to this week's episode of Serve No Master. Make sure you subscribe, so you never miss another episode. We'll be back tomorrow with more tips and tactics on how to escape that rat race. Head over to serve no master dot com forward slash podcasts Now for your chance to win a free copy of Jonathan's best seller, Serve No master. All you have to do is leave a five star review of this podcast. See you tomorrow. Thank you for listening to the serve. No master podcast. Make sure to subscribe so that together we can achieve true freedom.