Broker Henry owned a long-established business brokerage firm.

One day Henry asked the business brokers:

"Will you attach your business card to our 'Thinking of Selling Your Business?' cards and distribute them to businesses in your geographic area at least every three months?"

"Not I" said business broker #1
"Not I" said business broker #2
"Not I" said business broker #3

Henry then asked the business brokers:

"Will you select one or more of the company's existing listings and mail our 'Business for Sale' cards to all of the potential buyers in the area where the seller is located?"

"Not I" said business broker #1
"Not I" said business broker #2
"Not I" said business broker #3

Henry then asked the business brokers:

"The firm joined a local chamber of commerce in order to make it easy for you to meet local business owners and other prospects. Will you become active in the chamber in order to network with potential buyers, sellers, and referral sources?"

"Not I" said business broker #1
"Not I" said business broker #2
"Not I" said business broker #3

Henry then said: A person just called the office wanting to sell their business. They found us by searching the internet where they viewed our website. Another person called the office wanting to buy a local business. They responded to one of our company mailings.

Who would like a referral?

"I would" said business broker #1
"I would" said business broker #2
"I would" said business broker #3

Henry then said, "No. I will refer both prospects to a business broker that is working hard."

The three business brokers then complained about not earning any money.

 

 

Advantages to commission-based professions

There are several: (1) You will have unlimited earning potential. It is not unusual for top salespeople in many professions to earn more than the president of the company, (2) You will have a high degree of independence and maximum flexibility in your work schedule, (3) You will have the benefit of being an entrepreneur without the stress of having to run a business, and (4) You will have maximum job security. Some of the positions that offer commission based compensation include real estate brokers and agents, independent insurance brokers, mortgage brokers and agents, business brokers and agents, and advertising sales agents. The greatest disadvantage to commission compensation is that income is irregular which requires planning. Households with one person earning commissions with the other on salary are common.