Get All Access for $5/mo

The 4 Principles Needed to Achieve, or Deliver, Happiness Different people have different ideas about what might make them happy, but one thing is for sure: money only works to certain point.

By Tony Hsieh and Jenn Lim Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

It may be a cliche, but that doesn't mean it's not true: Beyond a certain point money can't buy happiness, at least not reliably or sustainably.

The key insight into the nature of happiness for us came when we realized that the quest for happiness was not only the reason that people pursued careers and started families, but was also what guided many of their decisions in day-to-day life. In 2007, Zappos.com started really looking into the science of happiness to help guide our decision-making -- after all, if happiness was the goal, wasn't it worth seeing what we really understood about the concept?

Related: How to Hardwire Your Brain for Happiness

By 2009, understanding and delivering happiness had become the centerpiece of both our personal and professional strategies, which is reflected in the mission statement Zappos adopted that year: "Zappos is about delivering happiness to the world."

Delivering happiness sounds good, but to be effective, you need to know what that actually entails. What makes you happy? What makes people around you happy? Different people have different ideas about what might make them happy, and it's important to note that people aren't always on the right track about what they think will make them happy.

Fortunately, psychology has taken up the case of applying scientific principles to understanding what really governs happiness. Psychology used to be primarily interested in figuring out what was wrong with people and making them "normal," which was used as a proxy for "healthy." But in the late 1990s, psychologists began exploring what's now known as "positive psychology" to get a better understanding of how otherwise average people might become happier.

It turns out, there are four key principles that drive happiness across the board. Whatever the specifics of how an individual derives happiness might be, these four key principles remain common:

1. A sense of control

Having a sense of control over your own destiny is paramount to lasting happiness. When this is lacking, people tend to easily give up and feel despair and helplessness, but with purpose and control over their own destinies, people become energized and unlock their talents and ambitions.

A good entrepreneur gives employees, partners and customers clearly apparent control over their own destinies in managing interactions with the company.

2. Perceived progress

It's no fun feeling like you're stuck in neutral. The perception of progress is a cornerstone of the path to developing sustainable happiness.

This is why the most successful video games offer unlockable content, achievements and badges and allow for "leveling up." These elements function to keep people interested and motivated, and to feel as though they're experiencing a sense of progression.

Related: If You're Not Happy, Stop Complaining and Make a Change

Good companies will do the same, offering clear and attainable promotional paths for employees and intuitive paths to satisfaction for customers and clients.

3. Connectedness

Humans are social animals. We thrive on connections to other people. In fact, we depend on those connections emotionally as well as physically. Engaged, connected employees work harder and report greater happiness than those isolated in offices or cubes. This is also why it's important to build a real rapport with customers and vendors.

We have evolved to care about the success of the tribe -- make your colleagues and clients part of your tribe.

4. Vision and meaning

There's nothing wrong with making money, but as we've learned all too well, making money is simply not enough. In fact, research indicates that once you reach a certain compensation threshold, your salary becomes significantly less indicative of your overall happiness.

Maslow's Hierarchy of Needs demonstrates how human motivation evolves rapidly once basic physiological needs are met, leading people to be more concerned with freedom of expression, social status, a sense of achievement, a sense of belonging and other intangibles.

If you're counting on money to generate your happiness, you're setting yourself up for disappointment. Being a part of something bigger and really committing to a vision brings deep satisfaction on a fundamental level. If you can find that sort of vision and meaning and offer it to the people in your life, you're laying a firm foundation for genuine, long-term happiness that transcends financial considerations.

Ultimately, it's up to you to decide what it is that you want to do with your life. But taking the time to truly understand what drives happiness will equip you to act effectively when pursuing it -- and when delivering it.

Related: 3 Simple Ways to Feel Happy

Tony Hsieh and Jenn Lim

Co-founders of Delivering Happiness

Tony Hsieh (pronounced Shay) sold LinkExchange, the company he co-founded, to Microsoft for $265 million in 1999 at the age of 24. He then joined Zappos as an advisor and investor, and eventually became CEO, where he grew it from almost no sales to more than $1 billion in annual sales while making it a regular on Fortune magazine’s annual Best Companies to Work For list.

Jenn Lim created the Zappos Culture Book, a symbol of how companies can use happiness as a business model to increase productivity and profitability. She led the launch and management of Tony Hsieh’s book, Delivering Happiness, which hit number one on the New York Times’ best sellers’ list, and was voted one of the best business books by the Wall Street Journal. Today, she’s the co-founder of Delivering Happiness, a corporate culture consulting firm with clients ranging from Audi to Lowe’s to Facebook.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Growing a Business

5 Effective Strategies to Boost Your Business's Online Presence

Boosting your online presence in 2025 is the key to success for businesses looking to grow. Working on your branding and reputation management is important to drive more sales and improve conversion.