Unlocking Your True Value: What's Your 20% DPH (Dollar Per Hour)?

Unlocking Your True Value: What's Your 20% DPH (Dollar Per Hour)?

Introduction:

As a coach for agents looking to maximize their productivity and achieve greater success, one of the fundamental concepts we explore is the notion of "Dollars Per Hour" or DPH. Traditionally, this metric involves calculating how much you earn per hour by dividing your total income by the number of hours worked annually. However, there's more to DPH than simple arithmetic. We must consider the profound impact of the 80/20 principle, also known as the Pareto principle, on this calculation.

The Power of the 80/20 Principle

The 80/20 principle suggests that roughly 80% of our results stem from just 20% of our efforts, while the remaining 80% of our efforts contribute to a mere 20% of our results. This principle reminds us that not all work is created equal. Some tasks or activities yield significantly more value and desired outcomes compared to others.

Calculating Your True DPH

To unlock your true value and identify your 20% DPH, you need to go beyond the traditional DPH calculation. Instead, focus on distinguishing the tasks or activities that generate the most significant results. These are the hours that truly matter, where your efforts yield the highest returns.

For instance, imagine a professional who earns $100,000 annually and works 2,000 hours. The traditional DPH calculation would yield an hourly rate of $50. However, applying the 80/20 principle, this individual may realize that not all tasks are worth $50 per hour.

Buying Back Your Time

Understanding your 20% DPH allows you to make informed decisions about your time and resources. You can identify tasks that can be offloaded or delegated, often at a rate far lower than your 20% DPH. Whether it's through hiring assistance, leveraging technology, or even utilizing AI, the goal is to free yourself from the 80% work that doesn't align with your true value.

Conclusion

In the world of small business ownership, recognizing your 20% DPH is crucial for success. It empowers you to focus on what truly matters, maximize your productivity, and strategically allocate your time and resources. By blending the traditional DPH calculation with the wisdom of the 80/20 principle, you can unlock your true value and embark on a journey to "buy back your time" from tasks that don't align with your top 20%. Remember, your time is your most valuable asset—invest it wisely.