By Claude Whitacre

Years ago, I had a conversation with a friend who was thinking of getting a job in sales. He asked me which I thought was better, Salary or Commission. This was my answer.

"Here's what a salary is: an agreement between you & your employer that they will pay you a certain sum per hour. Let's say $10 an hour.

Your work will make your employer much more than $10 an hour, or you'll lose your job. So the agreement is; Your employer will pay you the FIRST $10 an hour that you earn for him. AND HE KEEPS THE REST."

FriendWhat do you mean 'The rest'?"

Me"If you get paid $10 an hour, but you generate LESS than $10 an hour in profits to your employer, how long do you keep your job?"

Friend"Not long, I guess"

Me"Right, in fact most employers make a MULTIPLE of your salary off your results. They Have to, if they want the business to grow" Friend "That almost seems unfair"

Me " Actually, it's completely fair. If you agree to work for a specific amount & they give it to you, how can it be 'unfair'?"
Friend"So what's so great about commission?"

Me" THIS, You know the employer that pays you $10 an hour? HE'S on commission. Every CEO of a company, every self employed person, every farmer, every landlord, almost EVERY wealthy person in the WORLD works on the profits of their work, we call it a commission"

Friend "You make commission sound better"

Me "It IS better. You ever hear of someone getting promoted to 'Partner' in a business?"

Friend "Sure"

Me " The person WAS making a salary. When they become a partner, they now get a share of the company's profits; A 'Commission'. Commission is a Promotion. Commission is MORE"

That ended the conversation. It would make a better story if I knew what happened to my friend. I really don't know. We lost touch after that.

But years later my Brother in Law asked me where I was employed.

I said "I'm not employed"

He said "You don't have a job?"

Me "No, I have eight EMPLOYEES. THEY have jobs. I have a Company"

That felt pretty good.

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