"I Just Get Paid Commission"

23 replies
I didn't know where to share this, so you guys are getting it.
Today a very new Lexus pulled up, and an older couple got out of the car and came in, with a vacuum cleaner to fix. It was a very minor repair. They paid $1,800 for the vacuum two months ago.

The woman said, "I don't know why we bought the vacuum, I only bought it because I felt sorry for the salesman"

I asked, "Why did you feel sorry for him?"

Her; "He told us that he only got paid on commission. That should be illegal"

Me; "I only get paid commission"

Her; "Are you the owner?"

Me; "Yes"

Her, "Well. That's different, you have a choice"

Me; "He has a choice too. He doesn't have to work there"

Her; "Well, maybe not, but you have a choice"

Me; "Of course, but all business owners work on commission"

Her; "How can you pay your bills?"

Me; "Easily. What do you guys do for a living?"

Her; "We own a farm"

Me; "Then you work on commission. It isn't "He only gets commission", it's really, "He only gets a salary". The owner always gets commission. And the commission is always more"

Her; (Showing distress as these things are dawning on her) "But I felt sorry for him. He was at our home for over two hours, and didn't make anything unless we bought".

Me; "And I don't make anything unless you buy, Same as you. If it makes you feel any better he made between $400-$600 on the sale. Unless he was a distributor, and worked for himself, then it was more like $1,000 commission. Do you still feel sorry for him?"

Her; "The Jerk"

They were from out of state, and were visiting relatives (With their vacuum cleaner?).

Anyway, the way regular people think of business is a constant source of fascination to me.

If you are getting paid a salary, the person paying you, is making more than that off of your efforts, and is keeping the difference. That's how companies can afford to pay you your hourly rate.

If you don't like that, start your own company.
  • Profile picture of the author Sebulba
    Simply brilliant, and the perceptions of most people about business are slowly becoming corrupted more and more.

    Seb
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    • Profile picture of the author Kay King
      They were from out of state, and were visiting relatives (With their vacuum cleaner?).
      At that price, it probably has its own car seat.
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      • Profile picture of the author Joe Stewart
        Originally Posted by Kay King View Post

        At that price, it probably has its own car seat.
        They take it with them wherever they go. It must be one really freakin' good vacuum, right?
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  • Profile picture of the author DABK
    During the height of my appraising business, three pertinent things happened:

    1. I paid everyone 50% of what a job brought in. 6 of my 7 people were happy with that. The 7th, a new guy, kept wondering why he paid me 50% of all the jobs he did.

    I invited him to go on his own. If he succeeded, he'd have 100% of the pie. If he failed, he could come back.

    He never left. He stopped complaining; did not stop looking unhappy.

    2. I invited everyone to find me a client. I would pay them 10% of any work that client would bring in. Gave them, by way of motivation, 2 of my best clients: One had been bringing me some 250k a year in gross for 5 years, one 110k for 7. Told them, Bring me 3 like the first 1, and you'll make the same amount of money as you do now (for some of them more), except you don't have to do anything for a few years.

    Nobody even tried.

    3. Once, one of my people complained that I was not paying her enough for 2nd inspections (when they had to go to a house a second time, to take a photo from a different angle, to check that the owner had done some repair, etc.). I was giving them 50% of what I got and I was getting $50.

    If $25 is not enough, what's enough, I asked.

    She said $40.

    The net day, I started charging my clients $80 and, the very next time she did a second inspection, she got the $40 she wanted.

    She was not happy. She wanted $40 out of the $50, not just $40. Now that I was charging $80, she wanted $64. Because I was making too much! It was she who drove back to the house, she who paid for the gas.

    She said, she understood why I deserved 50% the first time someone ordered an appraisal, but a re-inspection? I didn't do anything to deserve any money from that! Even $16 out of $80 was too much!

    I told her she's free to keep 100% of all re-inspections she can get on her own, not the result of first inspections/appraisals that came through my company.

    She was not happy with my answer.

    How is any of the above pertinent?

    1. I got paid only when I collected on the jobs I got hired to do (occasionally, I did not or I got paid late). My people (subcontractors) got paid whether I got paid or not.

    Odd ideas about how business owners get paid by people who were subcontractors, i.e., people who only got paid if they could find someone to give them a job that they could perform!

    Imagine people who have always been only on the employee side of things!

    Originally Posted by Claude Whitacre View Post

    I didn't know where to share this, so you guys are getting it.
    Today a very new Lexus pulled up, and an older couple got out of the car and came in, with a vacuum cleaner to fix. It was a very minor repair. They paid $1,800 for the vacuum two months ago.

    The woman said, "I don't know why we bought the vacuum, I only bought it because I felt sorry for the salesman"

    I asked, "Why did you feel sorry for him?"

    Her; "He told us that he only got paid on commission. That should be illegal"

    Me; "I only get paid commission"

    Her; "Are you the owner?"

    Me; "Yes"

    Her, "Well. That's different, you have a choice"

    Me; "He has a choice too. He doesn't have to work there"

    Her; "Well, maybe not, but you have a choice"

    Me; "Of course, but all business owners work on commission"

    Her; "How can you pay your bills?"

    Me; "Easily. What do you guys do for a living?"

    Her; "We own a farm"

    Me; "Then you work on commission. It isn't "He only gets commission", it's really, "He only gets a salary". The owner always gets commission. And the commission is always more"

    Her; (Showing distress as these things are dawning on her) "But I felt sorry for him. He was at our home for over two hours, and didn't make anything unless we bought".

    Me; "And I don't make anything unless you buy, Same as you. If it makes you feel any better he made between $400-$600 on the sale. Unless he was a distributor, and worked for himself, then it was more like $1,000 commission. Do you still feel sorry for him?"

    Her; "The Jerk"

    They were from out of state, and were visiting relatives (With their vacuum cleaner?).

    Anyway, the way regular people think of business is a constant source of fascination to me.

    If you are getting paid a salary, the person paying you, is making more than that off of your efforts, and is keeping the difference. That's how companies can afford to pay you your hourly rate.

    If you don't like that, start your own company.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by DABK View Post

      During the height of my appraising business, three pertinent things happened:

      1. I paid everyone 50% of what a job brought in. 6 of my 7 people were happy with that. The 7th, a new guy, kept wondering why he paid me 50% of all the jobs he did.

      I invited him to go on his own. If he succeeded, he'd have 100% of the pie. If he failed, he could come back.

      He never left. He stopped complaining; did not stop looking unhappy.

      2. I invited everyone to find me a client. I would pay them 10% of any work that client would bring in. Gave them, by way of motivation, 2 of my best clients: One had been bringing me some 250k a year in gross for 5 years, one 110k for 7. Told them, Bring me 3 like the first 1, and you'll make the same amount of money as you do now (for some of them more), except you don't have to do anything for a few years.

      Nobody even tried.

      3. Once, one of my people complained that I was not paying her enough for 2nd inspections (when they had to go to a house a second time, to take a photo from a different angle, to check that the owner had done some repair, etc.). I was giving them 50% of what I got and I was getting $50.

      If $25 is not enough, what's enough, I asked.

      She said $40.

      The net day, I started charging my clients $80 and, the very next time she did a second inspection, she got the $40 she wanted.

      She was not happy. She wanted $40 out of the $50, not just $40. Now that I was charging $80, she wanted $64. Because I was making too much! It was she who drove back to the house, she who paid for the gas.

      She said, she understood why I deserved 50% the first time someone ordered an appraisal, but a re-inspection? I didn't do anything to deserve any money from that! Even $16 out of $80 was too much!

      I told her she's free to keep 100% of all re-inspections she can get on her own, not the result of first inspections/appraisals that came through my company.

      She was not happy with my answer.

      How is any of the above pertinent?

      1. I got paid only when I collected on the jobs I got hired to do (occasionally, I did not or I got paid late). My people (subcontractors) got paid whether I got paid or not.

      Odd ideas about how business owners get paid by people who were subcontractors, i.e., people who only got paid if they could find someone to give them a job that they could perform!

      Imagine people who have always been only on the employee side of things!
      Yes, very pertinent.

      I put up with similar complaints for 35 years from my reps.

      When I sold vacuum cleaners, one rep found out what I paid for the vacuums we sold. He brought it up in a sales meeting, with all 8 reps there.

      Him; "I found an invoice that says you only pay $450 for a machine we sell for $1,589. And you only pay us $400 commission. Is that fair? You should pay us more. And if you don't pay us more, I'm leaving".

      I knew the whole group was now ruined. Not because I couldn't sell the idea of why we paid what we paid. But because, to the group, they were now selling a $450 vacuum cleaner for $1,600...not a $1,600 vacuum cleaner. That's a huge difference in perception.

      But, I said "Yup. That's what we pay. And in our industry, that's about average. And what we charge is about average. And what we pay you is slightly above average. But now you (his name was Steve) leave me in a precarious position. You have decided to try to extort more money out of me, and you are doing it in front of everyone. You will never have to worry about me profiting from you again, because you no longer work here. Goodbye"

      And to the rest of the group (after a few minutes of Steve stomping around yelling obscenities, and walking out) I explained the breakdown of overhead, cost of goods, gift costs, finance fees, overhead, support employees costs.....they got it.

      I even explained that the actual cost of manufacturing was about $150. But that was also about normal for manufacturing, and it never bothered me. Although it did bother a few other distributors who also had an employees mentality.

      And the trick was, I let them do the math. I refused to position it as anything other than "Normal for our business".

      Employees see it as "They are paying you" rather than "You are paying them".
      And to them, and money you make is their money, that they have to give up.

      A side story about Steve; At the time he was a good rep. There were actually weeks, where he made more money than I did. With bonuses, he might make $2,000 or more for a week. If he made most of the sales (it happened occasionally), after overhead, I might not make anything except on my own sales. Steve was actually getting paid far more than most of the other guys, because his production was so high. But I still couldn't keep him, he had poisoned the well.

      Months later, he came back .....apologized...became a distributor for me, and did quite well for several years. I was really proud of him.

      But for the entire 35 years with a crew of salespeople, they were constantly complaining about not getting paid on sales to people they knew, or getting paid on credit turn downs, or if two of them went on a presentation, who made more.......

      How much trade-in were worth was a real problem for some.

      I learned to tell l them ahead of time what they would get, and give them the option to not accept it.

      Eventually, most learned that I was going to treat them as fairly as I could. Any question they had would be brought up at the sales meeting, by me, and answered in full.

      For a short time, I worked out of an office in Pennsylvania. They had a secretary that was very anti-sales. They were actually afraid of firing her.

      One day, an appointment I had cancelled. So, in front of the distributor and the secretary, I said, "That appointment didn't work out. But I was willing to go on the appointment, and I know they would have bought from me. So, I think I should get paid for the sale anyway".

      It was a joke. My friend (the distributor) laughed. The secretary said, in completely seriousness.."Absolutely, he should get paid!".

      And then I had to spend the next few minutes, trying to explain to her that that's not really how it works. It was a stupid joke on my part. And it could have caused a major problem for my friend. But it sure made for laughs when we met with other distributors.
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      • Profile picture of the author misterme
        Originally Posted by Claude Whitacre View Post

        One day, an appointment I had cancelled. So, in front of the distributor and the secretary, I said, "That appointment didn't work out. But I was willing to go on the appointment, and I know they would have bought from me. So, I think I should get paid for the sale anyway".

        It was a joke. My friend (the distributor) laughed. The secretary said, in completely seriousness.."Absolutely, he should get paid!".

        And then I had to spend the next few minutes, trying to explain to her that that's not really how it works. It was a stupid joke on my part.
        It made complete sense to her because she's divorced from her husband. Relying on her own paycheck drops her level of living, so she receives alimony from her ex to keep her in the lifestyle she had, as if she's still married to the guy and enjoying the benefit of that marriage, even though she's not married to him, seeing him, dating him or even having sex with him.

        So not working the job but getting paid for it makes utter and sheer complete sense to her.
        Signature
        "Best book on answering objections I have seen... it's for photographers but it has brilliant techniques you can use in any business." - Claude Whitacre. When They Say That, You Say This (Amazon Kindle)
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        • Profile picture of the author Claude Whitacre
          Originally Posted by misterme View Post

          It made complete sense to her because she's divorced from her husband. Relying on her own paycheck drops her level of living, so she receives alimony from her ex to keep her in the lifestyle she had, as if she's still married to the guy and enjoying the benefit of that marriage, even though she's not married to him, seeing him, dating him or even having sex with him.

          So not working the job but getting paid for it makes utter and sheer complete sense to her.
          I went through more than half of this post, before I realized you were pulling my leg.
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      • Profile picture of the author DABK
        One of the strangest complaints I've ever heard was from my wife and her family. I was paying my star appraiser 75k a year; all other appraisers they knew who were working for someone else were making 45-50k.

        They never saw that I was paying the guy a percentage of what the job brought in; the more I paid him, the more he made me.

        Conversely, I know of a mortgage company who had a loan officer who by himself brought as much business as their other 10 loan officers put together. Except end of December through February, when the 10 loan officers had fewer applications but the star one said constant.

        One day, he said he wanted them to give him his own processor/assistant.

        They said no.

        He started his own company.

        To put it in perspective; their 10 loan officers were bringing in 25-27 jobs (or $125,000 to $137000 or so.

        The star guy was bringing in the same, on average.

        A processor/assistant around here gets $4,000 a month.

        The cut was loan officer 70%, mortgage company 30%.

        The way I do math, 30% of $125,000 is $37,500. Less 4k is $33,500. $33,500 from one loan officer is amazing!

        More importantly, they already had enough processors. All they had to do is designate one of them as the star loan officer's processor/assistant.

        Really, changing the title of one of the people already working for them would have kept them the $37,500 monthly stream of income. And they would not do it (or did not think of it).

        Originally Posted by Claude Whitacre View Post

        Yes, very pertinent.

        I put up with similar complaints for 35 years from my reps.

        When I sold vacuum cleaners, one rep found out what I paid for the vacuums we sold. He brought it up in a sales meeting, with all 8 reps there.

        Him; "I found an invoice that says you only pay $450 for a machine we sell for $1,589. And you only pay us $400 commission. Is that fair? You should pay us more. And if you don't pay us more, I'm leaving".

        I knew the whole group was now ruined. Not because I couldn't sell the idea of why we paid what we paid. But because, to the group, they were now selling a $450 vacuum cleaner for $1,600...not a $1,600 vacuum cleaner. That's a huge difference in perception.

        But, I said "Yup. That's what we pay. And in our industry, that's about average. And what we charge is about average. And what we pay you is slightly above average. But now you (his name was Steve) leave me in a precarious position. You have decided to try to extort more money out of me, and you are doing it in front of everyone. You will never have to worry about me profiting from you again, because you no longer work here. Goodbye"

        And to the rest of the group (after a few minutes of Steve stomping around yelling obscenities, and walking out) I explained the breakdown of overhead, cost of goods, gift costs, finance fees, overhead, support employees costs.....they got it.

        I even explained that the actual cost of manufacturing was about $150. But that was also about normal for manufacturing, and it never bothered me. Although it did bother a few other distributors who also had an employees mentality.

        And the trick was, I let them do the math. I refused to position it as anything other than "Normal for our business".

        Employees see it as "They are paying you" rather than "You are paying them".
        And to them, and money you make is their money, that they have to give up.

        A side story about Steve; At the time he was a good rep. There were actually weeks, where he made more money than I did. With bonuses, he might make $2,000 or more for a week. If he made most of the sales (it happened occasionally), after overhead, I might not make anything except on my own sales. Steve was actually getting paid far more than most of the other guys, because his production was so high. But I still couldn't keep him, he had poisoned the well.

        Months later, he came back .....apologized...became a distributor for me, and did quite well for several years. I was really proud of him.

        But for the entire 35 years with a crew of salespeople, they were constantly complaining about not getting paid on sales to people they knew, or getting paid on credit turn downs, or if two of them went on a presentation, who made more.......

        How much trade-in were worth was a real problem for some.

        I learned to tell l them ahead of time what they would get, and give them the option to not accept it.

        Eventually, most learned that I was going to treat them as fairly as I could. Any question they had would be brought up at the sales meeting, by me, and answered in full.

        For a short time, I worked out of an office in Pennsylvania. They had a secretary that was very anti-sales. They were actually afraid of firing her.

        One day, an appointment I had cancelled. So, in front of the distributor and the secretary, I said, "That appointment didn't work out. But I was willing to go on the appointment, and I know they would have bought from me. So, I think I should get paid for the sale anyway".

        It was a joke. My friend (the distributor) laughed. The secretary said, in completely seriousness.."Absolutely, he should get paid!".

        And then I had to spend the next few minutes, trying to explain to her that that's not really how it works. It was a stupid joke on my part. And it could have caused a major problem for my friend. But it sure made for laughs when we met with other distributors.
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        • Profile picture of the author Claude Whitacre
          Originally Posted by DABK View Post

          One of the strangest complaints I've ever heard was from my wife and her family. I was paying my star appraiser 75k a year; all other appraisers they knew who were working for someone else were making 45-50k.

          They never saw that I was paying the guy a percentage of what the job brought in; the more I paid him, the more he made me.

          Same here.
          My first wife never helped in the business, so she had no idea how it worked. She was in the office when I gave a rep a $3,000 (I think) check for the week. Granted, it was an exceptional week for him. But it was in the 1980's...so, a good check.

          She said, in front of everyone, "$3,000! We can't afford to put out that kind of money!"

          Of course, it was embarrassing for everyone. I took her into my office and told her, "He works on commission. If I give him $3,000...it means he brought me $6,000 in profit."

          She still didn't get it, and wanted to know why I gave away so much of our money.

          I said, "I'm not giving him any of our money. I'm giving him his money, and we are keeping our money."

          She had it stuck in her head that the money coming in was ours, and anything I had to pay out was losing us money.

          I remember writing a check for $25,000 to buy inventory once. She flipped when she found out. To her, I was spending money. I had to tell her, "We have to buy the things we sell. Every dollar I pay for inventory converts to three dollars in net income to us".

          She wasn't alone. I had a rep once tell me, "I know you can afford to pay me more".

          I said "Of course I can. But here's how it works. If You bring a dollar into the business, I can't give it all to you, because we would go bankrupt, and you would be out of a job. So we pay you a little more than industry standard, because I want to be fair".

          The rep said, "What do you do to deserve part of my money?". And I knew then, that he had to go. There was no way to make him understand how business works. To him,it would always be, "Claude is taking some of my money"...and he would have poisoned the other reps.

          My current wife of 28 years, loves it when we write big commission checks, and so do I.
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          • Profile picture of the author misterme
            Originally Posted by Claude Whitacre View Post

            I said, "I'm not giving him any of our money. I'm giving him his money, and we are keeping our money."
            Incidentally, that's also how the IRS feels about you making the money their Treasury Dept prints.
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            "Best book on answering objections I have seen... it's for photographers but it has brilliant techniques you can use in any business." - Claude Whitacre. When They Say That, You Say This (Amazon Kindle)
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  • Profile picture of the author DaniMc
    In my opinion - we kind of have to have an attitude about this with people who work for us and anyone who offers opinions on work and compensation, including spouses.

    I am big into leadership and motivation, and at the same time I know what my costs are and will not tolerate any sort complaints about fairness dealing with compensation.

    I am always a positive and uplifting force with my people. The second they question what they make, you just have to stop it dead in its tracks.

    The fact is, I am the only one who is not getting a fair deal. I create the systems. I take the large financial risks. I find and hire good people. I spend many hours every single day for years learning. I put my ass on the line over and over. I've suffered losses they cannot imagine.

    They deserve almost none of the money I am giving them. I deserve lion's share of the profits. They are getting MORE than a fair deal by being able to work in this marvelous machine I have created. I am training them and teaching them and making them successful. They are not paying me anything for all of this opportunity. If they take the opportunity seriously, they can have riches for the rest of their lives.

    Yes in truth - the business owner is the only one not getting a fair trade.

    We must have an attitude about this subject. It is absolutely sacred. And criticizing the operation or compensation of the business is speaking against the Pope and is blasphemous. Excommunication is the result.
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    Be kind, for everyone you meet is fighting a hard battle.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by DaniMc View Post

      Yes in truth - the business owner is the only one not getting a fair trade.

      We must have an attitude about this subject. It is absolutely sacred. And criticizing the operation or compensation of the business is speaking against the Pope and is blasphemous. Excommunication is the result.

      It's Game Theory - and it rules all of human existence.
      To me, "fairness" never enters into it. I remember having to borrow money to make payroll..many times. Thank goodness this is a few decades ago. To me, my deal with my people was sacred. No matter how much, or how little I made, they got what was promised.

      And I had a pretty open door policy about it. If they had a question about a check, I would explain it, and be fair. And if their was a gray area, I always went with what benefited them the most, and then made it part of the program.

      But asking for more money that I agreed to pay? No.

      And occasionally, someone would bring up the idea that they should get more, or that I somehow cheated them. I couldn't tolerate that. If it was a gray area (meaning it could go either way), I'd just pay them....because it was my fault that I wasn't clear.

      But suggesting that I cheated them? They had to go. There was no saving that rep.

      At one meeting , I said something like "I'll tell you anything you want to know. And I'll never lie to you. But it will not ever change the deal I have with you. If it helps your understanding of the business, great, but it's not a negotiation, ever."

      And I told them that I was one of them, That I was a salesperson first. I knew how they thought. And I knew how to treat them well. But I also knew that reps can get greedy, if they know that a dollar goes to someone else.

      Most of the time, maybe 25 years, that I had reps, I was one of maybe 30 distributors in the US. Honestly, I made between $200,000-300,000 a year. But the average distributor made much more.

      The factory rep would say, "Claude, you could have a million dollars a year. I know you could" And he was right, of course. But it would have been a different business.

      My wife was the book keeper, I had a sales manager, a telemarketer/appointment setter, and I did the hiring, training, field training, financing, and also sold in the field. And we always had between 6-8 reps. A perfect fit for my business.

      I wanted to make sure the reps that had the aptitude made a really good living. So, I gave them lots of attention. And it was fun, even the bad parts. I was comfortable.
      A business making three times the sales would have been very possible, but not as much fun. And at my core, I'm a salesman, not a business manager.
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      • Profile picture of the author DaniMc
        Originally Posted by Claude Whitacre View Post

        I wanted to make sure the reps that had the aptitude made a really good living. So, I gave them lots of attention. And it was fun, even the bad parts. I was comfortable.
        A business making three times the sales would have been very possible, but not as much fun. And at my core, I'm a salesman, not a business manager.
        For me there is kind of a sliding scale based on how much we need each other.

        For the truly top-notch sales-person - I'd hate to see them go. They make me a lot of money. So, I would care a little more if they left.

        For the person who is just punching the clock and doing the minimum, I care zero if they leave.

        Either way, I think an important balance in business (and human relations in general) - is to never care too much. Especially when it is your business - you always gotta be the one who is needed, rather than needy.

        In my post above about the friend who left his company - they thought he needed them - he was doing so well that they found out otherwise. When someone is truly great, it is worth it to give them enough money that leaving is a bad choice for them.

        It's a game of chicken - I need you less than you need me. Except for that .5% of people who can really deliver. They are worth making a bargain with - but not too much, or things start to unravel.

        Everyone has to know their role.
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        • Profile picture of the author Claude Whitacre
          Originally Posted by DaniMc View Post

          Either way, I think an important balance in business (and human relations in general) - is to never care too much. Especially when it is your business - you always gotta be the one who is needed, rather than needy.

          In my post above about the friend who left his company - they thought he needed them - he was doing so well that they found out otherwise. When someone is truly great, it is worth it to give them enough money that leaving is a bad choice for them.

          It's a game of chicken - I need you less than you need me. Except for that .5% of people who can really deliver. They are worth making a bargain with - but not too much, or things start to unravel.

          Everyone has to know their role.
          My problem is that I always think of these reps as my friends. They aren't, but it's difficult for me to remember that. And....eventually, they remind me.

          I was buying vacuum cleaners for $399. I paid that for years. My company rep stopped at my office and told me, "We need to raise your price to $499. Are you OK with that?"

          I said, "Of course. You're entitled to charge whatever you like. You have to decide if you want to raise my price by $100. And then I have to decide if I'll pay it".

          They raised the price, I switched companies, and the guy called me and told me I was "Disloyal". I couldn't even get angry, it was so ridiculous.

          I keep feeling that we are all on the same team; reps, me, and supplier. But we aren't. I know that's not reality. At least, I know it intellectually.
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          • Profile picture of the author DaniMc
            Originally Posted by Claude Whitacre View Post


            I keep feeling that we are all on the same team; reps, me, and supplier. But we aren't. I know that's not reality. At least, I know it intellectually.
            I've been burned several times by getting too friendly and depending too much on others in my business. I am friendly with all - at the same time I gotta remember that each individual is the center of their own universe.

            People will betray in .5 seconds and not even know it is a betrayal. We will do it to them also, even though our intentions may be good and we can justify the situation. It's not like any of us are bad people.

            Everyone is just cooperating with others to get to some goal they find important. Get on the wrong side of that outcome and parents/children/spouses/best friends/business partners will change their mind about the situation.

            There are a couple of key partners that I have right now who are invested in my business. We are friends. We spend time together. But neither of us is under the illusion that wouldn't change if the arrangement stops working out for us.

            In a way, it keeps things going well. I can trust people like that. I know where they stand and what they will do.

            "Friendships built on business are better than businesses built on friendship"
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  • Profile picture of the author misterme
    The issue with giving that loan officer his own assistant... is it opens up a Pandora's Box, doesn't it? More requests will come up. Now gimme this,gimme that... the assistant will start making requests concerning what he or she needs... including raises... which means increased payroll costs... the other loan officers will want something just to keep up...

    ...all the while the bank president and board of directors are thinking, "hey, mr. loan officer - you're bringing in all that business right now WITHOUT a a personal assistant. Just keep doing what you're doing."
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    "Best book on answering objections I have seen... it's for photographers but it has brilliant techniques you can use in any business." - Claude Whitacre. When They Say That, You Say This (Amazon Kindle)
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    • Profile picture of the author DaniMc
      Originally Posted by misterme View Post


      ...all the while the bank president and board of directors are thinking, "hey, mr. loan officer - you're bringing in all that business right now WITHOUT a a personal assistant. Just keep doing what you're doing."
      A close personal friend of mine was in the exact same situation - we were bringing in millions per month to his company. They were stingy. He left, taking the millions with him LOL.
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    • Profile picture of the author DABK
      It does. And it doesn't. It's how you deal with it.

      It's a not an unreasonable request, in that situation... You, the super star loan officer always deal with one person, so things (information exchange) happens faster, you end up closing more loans...

      And, you definitely have to pay extra attention to one like the one I'm talking about. Not only did he take himself and his $135k gross monthly, he opened his own outfit, a few blocks away, and took away from their business.

      And, as I said, instead of distributing loan applications to the 4 or 5 processors they had on staff, they could just have sent them to one of them, loan officer would have been satisfied (for a few months or year).

      They did not try anything.

      Once upon a time, I used to work for a regional bank... They were not keen on paying people more... but had no issue on calling people assistant vice president and vice president... Kept people working for them for less than they'd get if they moved across the street for years... sometimes for years and years and years.

      Also, this was a family-owned brokerage... Daddy was the president, Mommy the SR Vice President, Oldest Son the CEO, Younger Son CFO, daughter was Marketing and Business Development Department.

      They're still in business, doing about 40% of what they used to do. The loan officer still has his own company, doing about 60% of what he used to do and he's got a handful of loan officers working for him...

      It worked out better for him than for them... and it could have worked better for them with a bit of flexibility in thinking...

      Hey, they could have said, nyet to the assistant but offered him something else his ego craved... They didn't bother.

      I'd have at least tried to change his title to Sr. Loan Officer.

      Anyway, you're right about the Pandora Box opening, but there were better ways then losing your star loan officer within 1 week of him requesting something.
      Originally Posted by misterme View Post

      The issue with giving that loan officer his own assistant... is it opens up a Pandora's Box, doesn't it? More requests will come up. Now gimme this,gimme that... the assistant will start making requests concerning what he or she needs... including raises... which means increased payroll costs... the other loan officers will want something just to keep up...

      ...all the while the bank president and board of directors are thinking, "hey, mr. loan officer - you're bringing in all that business right now WITHOUT a a personal assistant. Just keep doing what you're doing."
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  • Profile picture of the author Matt Taylor
    Banned
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    • Profile picture of the author DABK
      If you've been in business and need to spam forums, you ain't that great. Maybe an imposter is a better solution for us, eh?

      Originally Posted by Matt Taylor View Post

      Don't be confused by imposters! We are the real deal! We have a physical location you may visit and live knowledgeable people to speak with! We have been in business for over 17 years, We know how to raise your score the right way, FAST! Call today to get started over the phone! We help anyone in the US! free call (phone number removed by yours truly) more info link removed by yours truly
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  • Profile picture of the author eccj
    The commission thing is funny. Your mother-in-law will never understand what it means.

    She would rather her daughter be married to a guy making a fifth of what you do if he had a salary and good benefits. So just don't tell her if you can help it.
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  • Profile picture of the author max5ty
    Some people that work for corporations complain the CEO makes too much...and the workers should be paid more.

    Some hourly employees at small businesses complain they don't make enough per hour and should be paid more.

    A salesman that works on commission and complains he doesn't make enough is an idiot...

    sales is one of the very few jobs you can give yourself a pay raise anytime you want. You simply get more motivated and sell more. If you don't like the commission structure where you work, move on. If you're a good salesperson you will never have a problem finding employment.

    A salesperson that complains about not enough pay is obviously not the type to keep around...since pay is based on their performance. Them complaining about not enough pay simply means they're lacking in the performance department.

    And, actually, there are salespeople that bitch and moan that the other salespeople they work with are making too much. "They must be getting a lot of bones." "They must just be on a lucky streak."

    I use to have little patience for poor performing salespeople...and also the ones that sat around and complained.

    Thanks for the post.
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