The ‘Doubling Penny’ Story

(How to Live “Happily Ever After”)

A wealthy king had a beautiful daughter. When the Princess was old enough to marry, all of the
eligible young men in the Kingdom came to ask for her hand. One by one, the King spoke to them to
see if they were worthy of The Princess and the fortune that came with her.

Since whoever married his daughter would one day rule his kingdom, the King wanted his
future son- in- law to have the wisdom and patience needed to lead his subjects. After speaking with
hundreds of suitors, the King narrowed the choices to three men. He told the three men that to make
his decision, he would hire all of them for 30 days and during that time he would observe the way they
make decisions.

The King said that they wo uld be paid for their work and they could choose the ir method of
payment.
“I will pay you $10,000 a day for 30 days,” he said, “OR, if you choose, I will pay you a single penny
on day one and I will double that penny each day for 30 days.”

The three yo ung men made their choices and began to work. At the end of 30 days, the King
gathered them together to announce his decision. . .

Before we finish the story, ask yourself which method of payment you would have chosen --
$10,000 a day or the “doubling penny”? Obviously, $10,000 a day is $300,000. Would you have
chosen a guaranteed $300,000 or the unknown? Let’s see if you would have made the right decision.

$10,000/day The “Doubling Penny”

Day $ Paid Total $ Paid Total

1 $10,000 $10,000 $.01 $.01

2 $10,000 $20,000 $.02 $.03
3 $10,000 $30,000 $.04 $.07
4 $10,000 $40,000 $.08 $.15
5 $10,000 $50,000 $.16 $.31
6 $10,000 $60,000 $.32 $.63
7 $10,000 $70,000 $.64 $1.27
8 $10,000 $80,000 $1.28 $2.55
9 $10,000 $90,000 $2.56 $5.11
10 $10,000 $100,000 $5.12 $10.23

If you had chosen $10,000 a day, by the tenth day, you would have earned $100,000. If you
had chosen the doubling penny, you would have earned only $10.23. Did you make the right choice?
Day $ Paid Total $ Paid Total

11 $10,000 $110,000 $10.24 $20.47

12 $10,000 $120,000 $20.48 $40.95
13 $10,000 $130,000 $40.96 $81.91
14 $10,000 $140,000 $81.92 $163.83
15 $10,000 $150,000 $163.84 $327.67
16 $10,000 $160,000 $327.68 $655.35
17 $10,000 $170,000 $655.36 $1,310.71
18 $10,000 $180,000 $1,310.72 $2,621.43
19 $10,000 $190,000 $2,621.44 $5,242.87
20 $10,000 $200,000 $5,242.88 $10,485.75

Two-thirds of the month is done. If you took the doubling penny, you would have been paid a
total of over $10,000. If you had taken the guarantee, you would have earned $10,000 EVERY DAY -
- a total of $200,000. Want to change your mind? There are only ten days left. . .

Day $ Paid Total $ Paid Total

21 $10,000 $210,000 $10,485.76 $20,971.51

22 $10,000 $220,000 $20,971.52 $41,943.03
23 $10,000 $230,000 $41,943.04 $83,886.07
24 $10,000 $240,000 $83,886.08 $167,772.15
25 $10,000 $250,000 $167,772.16 $335,544.31
26 $10,000 $260,000 $335,544.32 $671,088.63
27 $10,000 $270,000 $671,088.64 $1,342,177.20
28 $10,000 $280,000 $1,342,177.20 $2,684,354.40
29 $10,000 $290,000 $2,684,354.40 $5,368,708.80
30 $10,000 $300,000 $5,368,708.80 $10,737,417.00

At the end of 30 days, if you had chosen $10,000 a day you would have $300,000. If you had
chosen the doubling penny. . . (oh my!). . . you would have more than. . .

TEN MILLION DOLLARS!

On the last day alone , you would have been paid more than Five Million Dollars !

This is the power of COMPOUNDING. In the beginning, when you double a small number,
the result is still a small number. But as you continue doubling, the number gets bigger and bigger and
bigger, and eventually, you achieve MASSIVE GROWTH in a SHORT PERIOD OF TIME.

Look at the chart above. If you took $10,000 a day, by the 24th day, you would have a total of
$240,000. With the doubling penny, your total would have been only $167,772.16. But look at the
LAST FIVE DAYS of the month. With the doubling penny, in those last five days, your DAILY
income grows from $167,772.16 to $5,368,708.80! It’s no wonder that Albert Einstein described
compound interest as, “The greatest mathematical discovery of all time.”

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 Your PPL business grows the same way -- slowly at first -- but as you keep building, the
compounding effect eventually creates MASSIVE GROWTH. But, with PPL you have a HUGE
ADVANTAGE.

With compounding dollars, the rate of growth in out example is 100% and stays the same. It is
the element of time that eventually creates the big numbers. With PPL, time is also in your favor, but
in addition, your RATE of growth ACCELERATES! Why? Because you are dealing with human
beings, not dollars.

Your PPL business starts with just you. You bring on a few people and your organization
grows, but it is still small. You and your organization bring on more people, and your organization
grows again. But you grow faster and faster because it’s not just you building your organization.

When you start your PPL business, it is 100% your effort. But as you develop leaders, each of
whom is working to build their organization (which is a part of your organization), it is NOT only your
effort. Each of you continues working and building, and your collective efforts result in “compounded
compounding”. Your RATE of growth accelerates and your organization grows BIGGER, FASTER.

Let’s get back to our story. . .

“I have watched you for the last month and each of you is an excellent worker,” the King told
the three young men. Only one of you, however, shall have my daughter’s hand,” he said, “and I have
made my decision. Actually, I made my decision before you started work.”

“Two of you chose to be paid $10,000 a day,” the King said to the young men. “I really can’t
fault you for that decision. Most people would do the same thing. After all, $300,000 is an
extraordinary salary for 30 days work,” he said. The King turned to the young man who would have
his daughter’s hand in marriage. “You chose ‘the doubling penny,’” he said. “You gave up a
guaranteed $300,000, without knowing how much you would be paid. Your willingness to work
without a guarantee has served you well,” he said. “Now you have your own fortune, as well as my
daughter’s fortune, and her hand.”

The bride and groom had a royal wedding and lived VERY happily ever after. . .

* * *

Most people want a “guaranteed” salary. In our business, we don’t have a guarantee. And so in
the early days of building a PPL business, when they are putting in a lot of effort and not yet seeing big
results, it’s common to have doubts about what they are doing. Many people GIVE UP when they
don’t see things happen as quickly as they would like. They GIVE UP because they are putting in a lot
of effort for relatively little reward. Sadly, many people GIVE UP right around “day 20”. . . just
before their business was about to explode.

But not you. You WON’T give up. You won’t give up because you understand that it takes
time to build a business and that while things may go slowly at first, eventually, COMPOUNDING
and TEAMWORK allow you to GET BIG, FAST. You’ll stick with it and you’ll get the rewards.

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 Let’s take a look at how compounded growth can build your PPL business.

Can we agree that with the right training, tools, and support, ANYONE (including you) could,
in the next month, go out and find ONE person who wants to make more money in our business? Of
course -- ANYONE (including you) can do that.

If you could do it once, could you do it again? With the right training, tools, and support, could
you recruit ONE Associate every month for a year? If you did do that, and you taught those
Associates to do the same thing, here’s how your organization would grow:

MONTH YOU RECRUIT TOTAL ORGANIZATION

1 1 2
2 1 4
3 1 8
4 1 16
5 1 32
6 1 64
7 1 128
8 1 256
9 1 512
10 1 1,024
11 1 2,048
12 1 4,096

At the end of one year, recruiting just ONE Associate each month and showing them how to
do the same thing, your organization would grow to more than FOUR THOUSAND ASSOCIATES!
You would earn overrides on every membership sold to those Associates and on every membership
those Associates sold!

Do you suppose some people MIGHT go out and get MORE than 12 Associates in 12 months?
That would mean a BIGGER organization and MORE income for you! Do you suppose some NON-
recruits might still become MEMBERS? Again, more income. Do you suppose some people might
CONTINUE to recruit people at an average of one per month AFTER their first year? That means
greater compounding !

Note that six months into the year your organization is still small. But look at what happens in
the next six months. Sound familiar? Massive growth doesn’t happen overnight, but over time, it
DOES HAPPEN!

Now, it is NOT going to happen EXACTLY like that for anyone, but. . . can you see how the
principle of COMPOUNDING gives our business the potential to eventually produce life-changing
wealth even for an average person who just “sticks with it”?

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