Dec. 9, 2025

Income and Wealth Multipliers - The Equity Multiplier Map

Income and Wealth Multipliers - The Equity Multiplier Map

Math doesn’t lie. Be real with your position, which side of the equation are you on?

Are you using Multipliers? Are you capturing 7% of the value or 93% of the value created?

Wealth comes from owning equity. Salary is linear while equity compounds via multiples.

$1M profit.
$250k goes to employee.
$750k in profit left goes to owner.
$750k x 4 (equity multiplier) = $3M
$3.75M goes to owner.

6.6% of the value goes to the employee.
93% of the value goes to the owner.

Owners have huge risks. Employees get paid first. That's ok. That's the way it's supposed to be if you don't take any risks.

 

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