Can Learning Be Compounded?

by RJ

in Self Improvement

2317065892_cb6ae77764I’m obsessed with the concept of compounding lately. I wrote about compound interest on the blog recently and  in the newsletter I wrote about compounding your income.

As you can see, this concept has been on my mind. Therefore, I figured I could take the compounding one step farther – learning.

Can learning be compounded? I believe so. Here is a quick example. Please feel free to share your thoughts.

Example of Compound Learning

You want to learn how to make passive income online.

You do about 60 minutes of research and find you can make a passive income writing for the website eHow.

You spend the next 60 minutes creating your first eHow article. This brings you $1 of income a month. Not much, but it’s a start.

The next night, you decide that you want to create another page on eHow. However, before you create an article, you spend 60 minutes learning the basics of keyword supply and demand.

You design a simple procedure for picking keywords that you think you have a chance to rank high for. With this additional knowledge, you create an eHow page that will earn an average of $2 a month.

The next night, you spend 60 minutes learning about keyword placement in your eHow page. Not only can you pick keywords with a low supply and high demand, but you can place those keywords in specific spots in the article where the search engines look. Now that your pages are getting more traffic, you’re earning $3 a month per article.

The next night, you spend 60 minutes learning how you can become more productive. You design a system that will allow you to create two articles in the same time as it took to complete one article. Now in just 60 minutes, you can create two pages.

A few months go by and your little eHow business has hit its peak. Although it’s generating $2,000 a month in income, you realize that creating articles on a third-party website isn’t a great long-term business.

When you were doing some reading a while back, you read about someone who created an eBook, built a website, and sells that eBook.

You decide to create an eBook about how to make money online using eHow. With the knowledge you previously gained through your eHow business, you’re able to sell 100 copies of the book a month for $200.

You continue to learn about marketing your eBook. You spend 60 minutes learning the basics of copy writing. With just 60 minutes of learning, you sell an additional 10 books a month.

You than spend 60 minutes learning how to use Google AdWords to sell your eBook. This extra knowledge drives more traffic to the website and you sell 20 more books a month.

Now, in just 60 minutes, you created an additional $400 a month in income. When you first started, an additional 60 minutes was increasing your income by $1 per article or $30 a month if you were to create 30 articles.

This is my example of compound learning.

Any thoughts?

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{ 1 comment }

GeorgeNo Gravatar December 18, 2009 at 8:33 am

Fascinating. When I discovered the miracle of compound interest, I started applying it all over, including learning!

Here’s why I came up with. If we choose to master a specific skill, what would happen if we improved by 1% each day? I know it might be difficult to measure 1%, but let’s assume you can. In that case, after 1 year (365 days), how much would you improve?

365 x 1% = 3.65. That would be the improvement if learning were linear.

But we are improving 1% on the skill level of each day. So it is compounded. This turns out (surprisingly) to be 36 times! So we can improve our skill level by 36 times just by improving by 1% each day. I found this really exciting.

I think the important thing (and what your post illustrates beautifully) is that by improving just a little bit each day we can achieve incredible results.

Anyway, that’s my random idea.
.-= George´s last blog ..The Myth Of Limited Regulation And Limited Rewards =-.

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