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Mr X is a property agent. He acts as the middleman between a buyer and seller of a property by negotiating the price between the two interested parties and transacts the deal. He can get as much as 2% of the total purchase price of the house which means that for a $800,000 property, he can get as much as $16,000. Subtracting the cost of business, he probably makes $12,000. When all the paperwork is done and owner moved in, that’s probably the end of the story. If there is something wrong with the house after some time, the owner will look for their own repairman or solve their own problems. The Property Agent is usually out of the picture…
Mr Y is a Vacuum Cleaner seller. He tries to generate interest of the consumers by telling him how good the vacuum cleaner is. He will spend time demonstrating to the consumers on the functions of the vacuum cleaner and using sales pitch to make a living. He can earns probably about 25% from each sale after factoring cost. Assuming each vacuum cleaner cost $1,000 and he sell 10 each month, he will make $2,500. If he is a wholesaler, he can sell 10 vacuum cleaners to 10 retailers and in returns gets $25,000. If there is something wrong with the vacuum cleaner after some time, the owner will take the warranty and look for the manufacturer directly. The vacuum cleaner seller or wholesaler is usually out of the picture as well…
Mr Z is a financial adviser. He tries to tell people how important it is to save and to protect their wealth. He, like Mr X and Mr Y, has to spend money and time to prospect for a client. He also must possess certain sales capabilities in convincing the client the need to act on various financial solutions. It seems like Mr Z is not much different from X and Y but Mr Z is holding on to a very challenging job out of the three. Why? Read more...