Would You Rather Recruit Buyers or Sellers?
By highlyclever
@highlyclever (1111)
United States
July 15, 2008 11:06am CST
I think everyone has heard the little tale where a fellow is asked whether he would like to receive a million dollar lump sum cash payout right now, or whether he would like to receive a penny today, two pennies tomorrow, four pennies the next day, with the doubling pattern continuing for the next 30 days. He would actually be a fool to take the million dollars today, because here is how his payment schedule would go:
Day 01: $0.01
Day 02: $0.02 = $0.03
Day 03: $0.04 = $0.07
Day 04: $0.08 = $0.15
Day 05: $0.16 = $0.31
Day 06: $0.32 = $0.63
Day 07: $0.64 = $1.27
$1.27 total at the end of the first week! (Is it to late to take the million?)
Day 08: $1.28 = $2.55
Day 09: $2.56 = $5.11
Day 10: $5.12 = $10.23
Day 11: $10.24 = $20.47
Day 12: $20.48 = $40.95
Day 13: $40.96 = $81.91
Day 14: $81.92 = $163.83
$163.83 at the end of two weeks! But he could have been a millionaire fourteen days ago!
Day 15: $163.84 = $327.67
Day 16: $327.68 = $655.35
Day 17: $655.36 = $1,310.71
Day 18: $1,310.72 = $2,621.43
Day 19: $2,621.44 = $5,242.87
Day 20: $5,242.88 = $10,485.75
Day 21: $10,485.76 = $20,971.51
$20,971.51 at the end of three weeks is not bad. Actually, an average income of seven thousand dollars per week is pretty impressive... but it's still not a million dollars...
Day 22: $20,971.52 = $41,943.03
Day 23: $41,943.04 = $83,886.07
Day 24: $83,886.08 = $167,772.15
Day 25: $167,772.16 = $335,544.31
Day 26: $335,544.32 = $671,088.63
Day 27: $671,088.64 = $1,342,177.27
Finally, on day 27, we have crossed the million dollar threshold of received income. But --- we still have three days to go!
Day 28: $1,342,177.28 = $2,684,354.55
Day 29: $2,684,354.56 = $5,368,709.11
Day 30: $5,368,709.12 = $10,737,418.23
On day one, he could have one million dollars, or on day 30, he could have close to eleven million dollars.
Which would you take?
The point of all this (back to the title of this post) is the question of - Which would you rather recruit - buyers or sellers? If you successfully recruit buyers, you get that instant million dollar gratification. If you successfully line up a team of successful sellers, you start to see where taking the million dollar buy-out at the beginning becomes a rather silly thing to do!
Do you agree?
1 response
@multimastery (1195)
• United States
15 Jul 08
Hey highlyclever! this is a Highly Clever post LOL... and of course I would take the pennies doubled over 30 days ANYDAY! I wrote about this concept in a financial blog I have in the past and it still amazes me when I hear about the Power of a Penny!
1 person likes this
@highlyclever (1111)
• United States
16 Jul 08
Thanks multimastery! It is amazing how the pennies add up... and it's also amazing how many people sell themselves short in the short-term versus looking for something even bigger in the long term.
Thanks for your reply!


