The rich get richer and the poor get… children. Or so the saying goes.
But let’s look at the first half of that statement: “The rich get richer.”
I believe this is true in more cases and the reason is simple. It is because the more successful you are, the more opportunity for further growth and success come your way. It’s almost like Facebook’s network effect, where the more people that join the network, the more valuable it becomes to everyone–except this phenomenon happens on a more personal level.
I will give two examples of this, one hypothetical and the other real.
Hypothetical: a company reaches $1 million in annual sales revenue. The company will naturally have an easier time reaching $2 million in annual revenue because (1) they now have greater leverage in terms of capital they are able to invest, and (2) because they have reached that milestone of success, their product or service is likely touching the lives of more people, so more opportunities through word of mouth will flow back to the company–like growing roots of an oak trees absorbing nutrients from an ever greater radius.
For the real example: from the period of February to March, I wrote a blog article every week day straight. Traffic increased 400%, I met others online who were interested in our content and who were willing to retweet it or link to it from their blog, even Read Write Web. Guest blogging opportunities flowed it, as did comments, and some partnership opportunities.
It seemed all very natural at the time, but it’s a great example of the Law of Compounding Success: the more successful you become, the more opportunities will continue to come your way, leading to even greater success.
As a final, but important anecdote I will add that a by product of the Law of Compounding Success is that it builds momentum for a business since it by definition builds on itself. That being said, just make sure that if your successful, that you can keep up with it
Makes sense right? What’s your take on the Law of Compounding Success?