The Law of Increasing Returns (or Multiple Returns)

The Law of Increasing Returns states that an expenditure of a small amount of energy properly applied can produce a larger yield of like energy in return.

If I attempt to drive a nail into a tabletop by striking it with my hand, I can repeatedly hit that nail with all of my might and never drive it into the table top completely. If I attempt to drive the same nail into the same tabletop by striking it with a hammer, with few strikes (perhaps just one), I can drive it completely into the tabletop with considerably less effort.

If I run barefoot on the beach at top speed for one minute, I will cover less distance than if I’d run with shoes on at top speed for one minute along the boardwalk.

If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.

If I announce to people passing in the street that I am selling widgets for 50% off, I may sell a few widgets. If I appear on national television and announce that I am selling widgets for 50% off, I may sell thousands of widgets.

All four of these examples depict the Law of Increasing Returns in action. Under the Law of Cause and Effect we learned that for every expenditure of energy, there is a consequence. And, under the Law of Reciprocity we learned that for every expenditure of energy there is a return of like energy. Under the Law of Increasing returns, we learn that small energy expenditures can return disproportionately large consequences; like a snowball rolling down a snow covered hill gathering momentum and mass.

Think of the Law of Increasing returns as a great lever or pulley that allows you to produce great results with minimal effort. I have mentioned in several articles the benefits of demonstrating unconditional love toward others. It is so important to your success that I will mention it again here. We said that love is respect, admiration, support, negotiation, cooperation, reassurance and encouragement. When you demonstrate these qualities toward others, without expectation of profit or gain, you are leveraging a huge return of love to come. Remember, love is the force that binds together that which is intended to be together. So, as love is projected outward on a circular path that leads back to you, it gathers energy that is intended for you and returns amplified, often bearing unexpected gifts.

Why do you think sales promotions are so effective? Buy one get one free, free vacations, free gas cards, all such promotions succeed because it is human nature to respond in like kind to acts of love (goodwill). The entire world loves a cheerful giver, and, the greatest gift is love!

Why would McDonald’s give you a coupon for a free cup of coffee? It's because they know that when you come for your free coffee, you are likely to buy breakfast for the entire family. That is not manipulation or trickery; you are doing what is in your nature to do. McDonald’s simply aligned itself with the law of increasing returns.

The Law of Increasing Returns guarantees that you will never lose with demonstrations of love. Yes, you will be taken advantage of from time to time. Allow that with love. In the end, you will always come out ahead.

People spend hundreds of dollars each year buying kids the most expensive, most popular games and toys hoping to be remembered as a great parent, grandparent, aunt or uncle. But, what will mean the most, and be remembered the longest, is the one-on-one time spent with that child in mutually enjoyed activities. Love is in the time and effort, not the materials.

Being of assistance to others is an investment in your future. Do it because it is the right thing to do. Do it because it feels good. Do it because you’ll feel better about the person that you are. But, doing it will also return huge showings of respect, admiration, support, negotiation, cooperation, reassurance and encouragement. When you seize opportunities to be of assistance to others, your load gets lighter and everything you try to accomplish comes easier.

Now, some will be confused about this. Demonstrating a loving spirit by “always being of assistance to others,” simply means that you should always provide more in value than you take. Do for the joy of doing. Give for the joy of giving.

In business, be fair, be more than fair. Offer bargains that you can afford. If you have a product or service for sale, demonstrate for your customer the value it represents, the problems it solves, the convenience it provides, the savings it creates.

If the going rate for teaching a man to fish is $100.00 and you have a customer that is so desiring to learn that he will pay $200.00, you don’t have to charge $50.00 to be loving, but neither do you have to charge $200.00 because he is willing to pay it. If you can do it for $80.00, then charge $80.00 and watch as your customer’s gratitude results in growing word-of-mouth advertising, new customers and return sales. When you practice love in business, the law of Increasing Returns guarantees that your business will grow.

When competing in the marketplace, discounts and freebies are excellent demonstrations of love. But, if you cannot afford these, build your business by providing better service, be more convenient, friendlier, remember your clients name and history, send greeting cards, provide better follow-up, and offer a stronger guarantee. These small expenditures of effort return great results.

Never forget that the Law of Increasing Returns leverages the powers of cause and effect, and reciprocity! Just as acts of love leverage great returns of respect, admiration, support, negotiation, cooperation, reassurance and encouragement; acts of fear leverage great returns of the exact opposite. When you practice greed for fear of lost profit, or prejudice for fear of those who are different, expect large returns of loss, disdain, complexity and discomfort.

When you embrace your open, loving nature, the universe becomes your partner in all that you do. That is the grace of The Law of Increasing Returns!