The Domino Experiment: From One to Two Billion

I love weird science experiments…

And Professor Stephen Morris is a Canadian physicist with a weird collection of dominoes.

The first domino is smaller than a Tic Tac – just 5mm by 1mm.

(This domino is so small that Dr Morris has to place it with tweezers.)

The rest of Professor Morris’s dominoes increase in size – with the 13th sitting as high as his chest – and weighing around 100lbs (45kgs).

An Increase of Two Billion Times The Force…

Lining the dominoes up in order, he lets the tiny Tic Tac domino tip gently over – pushing down the larger second, then even larger third domino – all the way to the largest 13th – which comes thundering down with a crash!

It’s an impressive demonstration of “domino magnification” – the compounding effect of physical force you can achieve with different sized dominoes.

In fact, the force from the 13th domino falling is TWO BILLION TIMES the initial force from the first domino!

“If we had 29 dominoes, the last domino would be as tall as the Empire State Building!” Dr Morris reveals with a grin.

Einstein was right.

The most powerful force in the universe IS compounding.

We see it in physics – and the example above, where force can be multiplied 2 billion times over a series of 13 steps.

And we see it in finance – where a bank can receive back more than double the initial capital loaned in the form of interest, when interest is charged regularly.

But Compounding Isn’t Just For Bankers and Physicists

It’s possible to achieve compounding effects in business too.

You just need to look for these 3 traits:

1. You Need a Series of Steps

The first thing you need is a series of steps – with each step building on the previous.

You have one domino pushing on another, then another, then another. Or one magnifying glass, magnifying through another, then another. Or one interest charge, charging interest on another, charging interest on another.

In business, marketing is one unique area where you can find the series of steps necessary to achieve a compounding effect.

(This series of 7 steps is outlined in the whitepaper The 7 Levers: Doubling Profits Through 7 Simple Marketing Tweaks.)

An improvement in just one of the 7 Levers areas will flow onto all the steps that follow – leading to a slight increase in profits.

But an improvement in ALL of the 7 Levers areas will result in a compounded increase in profits.

2. The Bigger Any Improvement Is, The Better

Professor Morris’s experiment sees his dominoes grow in scale so quickly because each domino is roughly 1.5x higher than the one before.

But – in marketing – we don’t need to be constrained by 1.5x improvements.

In the 7 Levers process, we aim to achieve at least 10% improvements in each of the 7 Levers areas. This is a modest improvement that almost any business will be able to achieve, without too much sweat. And if all you did was achieve 10% improvements across all of the 7 Levers, you’d achieve a near-doubling of profits.

But if you were to achieve more than this – say a 40% improvement – you wouldn’t just double profits. You’d end up with 10x the profits you had before!

3. The Earlier You Begin, The Better

As any retirement planner will tell you: the sooner you begin, the better-off you’ll be.

Compounding takes time. And the more time you give something to compound, the bigger the effect will be.

And – this final trait of compounding is the reason why you should stop what you’re doing, and grab the whitepaper now.

The sooner you begin, the longer you’ll have to take advantage of any compounding improvements in your business.

So I encourage you to begin today.

Until next time,

Brent Hodgson

about-pete
Pete Williams is an entrepreneur, author, and marketer from Melbourne, Australia.

Before being honored “Australia’s Richard Branson” in media publications all over the continent, Pete was just 21 years old when he sold Australia’s version of Yankee Stadium, The Melbourne Cricket Ground For Under $500! Don’t believe it? You will! Check out the story in the FAQ section (it really is our most asked question).

Since then, he’s done some cool stuff like write the international smash hit ‘How to Turn Your Million-Dollar Idea Into a Reality’ (+ the upcoming ‘It’s Not About the Product‘) and he’s created a bunch of companies including Infiniti Telecommunications, On Hold Advertising, Simply Headsets and Preneur Group.

Lots of other people think he’s pretty good too! He’s been announced as the Global Runner-Up in the JCI Creative Young Entrepreneur Awards for 2009, the Southern Region Finalist in the Ernst & Young 2010 Entrepreneur of the Year, and a member of SmartCompany’s Top 30 Under 30.

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