Tag Archives: income

Sales Insider

April 5, 2017 by

I love sales. It is a career where you, the sales professional, determine your income based on how skillfully you execute the duty. It has a feel of independence, ownership, and entrepreneurship, and it can be extremely rewarding. Professional selling is regarded as one of the top-earning careers on the the planet. Note to you business owners out there: If your salespeople are making more money than you, don’t be jealous, be excited because they are building your business and increasing its value.

The term “commission” is familiar to ranks of sales professionals. However, I want you to think about your income a little differently. Rather than earning commission when a sale is made, think about your pay as an hourly wage. What makes your hourly pay different from the familiar, traditional hourly jobs is that your hourly rate will change based on the activity you happen to be doing at the moment. For example, in my previous career, for every 10 presentations I made, I would close on, and get paid commission for, three orders. On the three projects I won, my hourly rate was great, but on the projects I lost, my hourly rate was $0/hour. I thought “this is just how it is in sales,” so I did little to change or improve my sales performance until I was taught to think of my compensation as hourly. Spending 60 hours per week on sending proposals to my customers meant missing out on my kids’ activities and time with family, all so I could get paid for 30 percent of my time. That made me angry. This is madness, yet a vast majority of salespeople would give you a similar story.

I think there is a better way to sell that will pay more per hour, which means one can earn their desired wage in less time. I just need to figure out how to get rid of the seven prospects who don’t buy quickly and only spend time on the three who will buy. If I can figure this out, then I will close the three orders, so my pay is the same as before, but I do not spend much time on the seven who do not buy. Can you see how my hourly wage more than doubles?

Since your time is just as valuable as your prospects’ time, only the prospects who plan to buy from you get any of it. In order to do this, you must sort all prospects who talk to you as either buyers or window shoppers. The first step in doing this is to recognize that there are four possible outcomes of a sales call: yes, no, maybe, and clear future. Let’s examine each one.

Yes: Congratulations! You achieved an order and you will earn money.

No: Shoot! Shake it off. There are plenty of other customers out there who will buy. Did you know that “no” outcomes are good, and they can actually make you money? If you get a “no,” that opportunity no longer consumes your time, which means you can divert time to those who buy, and your hourly rate actually increases.

Maybe: Stay away from the dreaded “I need to think it over.” These outcomes represent the “window shoppers” and will cost you money. These prospects waste your time and consume your resources. Therefore, when a prospect stalls, push them to “no.”  At least a “no” will make you money.

Clear future: Sometimes your product or service cannot be sold in one call. You might need multiple meetings to formulate the solution and make the sale. This positive outcome is for those prospects who see value in your solution, are willing to move the process forward, and want the sales conversation to continue on a specific day at a specific time.

Thus, the rule is “No more maybes.” If you can make this rule part of your selling system, you will increase your hourly rate and significantly grow your sales. You effectively sort the buyers from the window shoppers and spend more time on those who buy. Now, I close three out of four presentations I make, my income has increased by triple digits, and I spend less time doing it all.

So, what is you hourly wage?

Karl Schaphorst is a 27-year veteran of sales who now specializes in training other sales professionals. He is the president of Sandler Training.

 

 

 

 

 

 

 

 

 

 

 

This article was printed in the Spring 2017 edition of B2B.

Uber and Lyft

March 26, 2017 by
Illustration by Matt Wieczorek

With the post-millennial rise of ride-hailing companies Uber and Lyft, a generation weaned on digital technology could suddenly tap a smartphone app, summon a private car driven by the owner, and pay for the fare electronically. Easy peasy.

Uber and Lyft can thank their younger demographics for pushing revenue into the billions of dollars.

But guess what? Both transportation companies have figured out that profitable fruit doesn’t only come from young trees. The push to make ride-hailing easier for retired Americans looms on the horizon, and that horizon can’t come into focus soon enough.

“Transportation has always been one of our greatest challenges,” says Erin Endress, director of sales and marketing at Remington Heights, a retirement community in Omaha. “We have vans, but getting residents to and from medical appointments takes priority, which it should. That leaves little opportunity for trips just for fun. We could definitely use a transportation alternative, as long as it’s safe.”

And for those who still live at home but whose eyesight or reflexes may not be the best?

“Personally, I think Uber and Lyft are going to make a huge difference for folks as they stop driving or don’t drive as much, or as far, on their own,”  says Cynthia Brammeier, administrator of the Nebraska State Unit on Aging. “I’m looking forward to getting to that point. It’s awesome!” she exclaims, having personally experienced the buzz surrounding Uber while visiting another state.

Nebraska came late to the party, approving Uber and Lyft operations in July 2015, which may explain a lack of awareness among Omahans in general.

The necessity of a smartphone to summon a ride excludes many seniors from ride-hailing apps. According to the Pew Research Center, 70 percent of those 65 and older don’t own a smartphone, instead preferring cheaper, old-fashioned flip phones with limited data capabilities.

One segment of the senior population did benefit immediately from having the transportation alternatives in Omaha: drivers.

“I’ve been with Lyft for over a year. It’s my only job now, “ says Dave*, 68, who prefers to remain anonymous. Working about four hours a night, the Dundee resident brings home “between $400 and $500 a week working the entertainment district and trips to the airport. But that’s not counting my car payment, gas, and insurance.”

The insurance question explains why Dave doesn’t want to be identified. Both Uber and Lyft have up to $1 million in liability coverage. But if a driver gets into an accident on the way to pick up a passenger, how much his or her personal insurance carrier will pay out becomes murky, since the driver uses the car for profit.

The advantages of ride-hailing services, previously called ridesharing, seem pretty clear.

“We’re half the cost of a cab,” Dave says. “We pick up passengers within five to 10 minutes. The cars are newer, clean, and have to be four-door. No cash exchanges hands, unless the passenger tips me in cash.”

The advantages for Dave include setting his own work schedule, meeting “wonderful people,” and showing off his hometown to visitors. “I love Omaha and I consider myself an ambassador for this city,” he says. “Nearly all my passengers say how friendly we are here.”

But why would someone in their 80s summon a stranger to their home to pick them up?

“[The companies] check us out pretty good,” Dave assures. Both Uber and Lyft conduct extensive background, criminal, and DMV checks. Lyft sent an employee to inspect Dave’s Toyota. “Believe me, we’re safe.”

The opportunity for seniors without smartphones to utilize Uber or Lyft as passengers depends greatly on a “no app required” platform. One such service recently appeared on a list of transportation options compiled by the Eastern Nebraska Office on Aging.

“It’s called GoGoGrandparent,” says Taylor Armstrong of the ENOA. “We’re told you don’t have to use a smartphone. People just call a number.”

The brainchild of a California man whose grandmother couldn’t tool around San Diego anymore, GoGoGrandparent uses a toll-free hotline to connect seniors with an operator, who then summons an Uber car for them.

“We’re not recommending this service over all the other transportation options ENOA offers,” cautions Jeff Reinhardt of the public affairs division. “We haven’t gotten any feedback yet on GoGoGrandparent.”

Lyft’s contribution to creating easier access involves senior-friendly Jitterbug cell phones and smartphones. When paired with a 24/7 health care provider, a registered user simply dials “0” on the Jitterbug phone and books a ride through the operator. This pilot program has yet to find its way to Omaha.

“We’re going to be top-heavy in seniors in the next 10 to 20 years,” Endress says. “There’s a huge need for entrepreneurs who want to make a difference in someone’s life.”

As evidenced by the rapidly changing technology that grants the gift of mobility, the difference-makers have arrived.

Visit uber.com, lyft.com, and

gogograndparent.com for more information.

* Dave is not the driver’s real name.

This article was printed in the March/April 2017 edition of 60 Plus.

The Big Move-In

March 25, 2013 by
Photography by Bill Sitzmann

So you and your partner have decided to take your relationship to the next step by moving in together. Holy cow, you say, where do we start?

Before even beginning the home hunt, ask yourself if this is something you truly want. If you feel unsure or pressured, now is the time to speak up. Do not use moving in as an excuse to save an already troubled relationship. Think on it for a few weeks, or even a few months, if you can. Make sure you both legitimately enjoy each others’ company and have as many overnights as possible so he gets used to your natural beauty (i.e., sans makeup), and you get used to his cleaning rituals—or lack thereof.

As Laura Drucker for The Daily Muse puts it, “It’s okay to feel scared—big changes can potentially equal big disasters,” but if you two are in a serious, committed relationship, cohabitation may allow you two to continue your life together and get to know each other on a newer, deeper level.

Consolidating Your Inventories

Downsizing your own inventory first will help you to decide what stays and what goes. Maybe it’s time to let go of the 20 socks with no mates (even though the plaid one is super cute), or the coffee maker since you’re a tea drinker now. This could even be a lucrative decision, as lightly worn clothing or older, unmatched furniture can easily be sold on Ebay or Craigslist. Next, make a list of everything you are moving with and everything else you are putting into storage. When consolidating the big items, choose the newer, nicer pieces. Rosemary Brennan’s “5 Conversations You Must Have Before Moving In Together” in Glamour suggests, “keeping the most comfortable bed, better television, and newer living room furniture.”

The Sit-Down

The distribution of bills and chores is incredibly important. First, it helps if both of you are financially stable with steady incomes. Split bills down the middle if you make about the same, or split them based on ratio if one of you has a higher-paying position than the other. Have a sit-down before signing the lease to discuss chores, scheduling, budgeting, and even who is (and is not) allowed over when one of you is not home. Starting with a plan you can actually stick to will help soften the blow when these issues arise in the future.

Communication is Key

Know how to argue successfully with your partner without being hurtful. Make sure there is a definite end to an argument, and, most importantly, a resolution. This is when Mom’s advice on knowing when to pick your battles really starts coming into play. Be open to compromise. For example, agree to keep his shot glass collection in exchange for more room in the closet. Be diplomatic, not demanding about what stays and what goes. By making the effort, the process of you and your partner moving in together will be easier and more successful.

Retirement Planning To-Do

I know a doctor who is thinking about retirement. He’s not overly concerned about his future. But his retirement is five years away.

The No. 1 factor, in my opinion, affecting anyone’s retirement savings is inflation. Inflation is relatively tame at the time of this writing, but it can still be harmful—even if you plan to retire in five years. So, here’s what I suggest:

1. Don’t quit on stocks. “To achieve returns to sustain a 30-year retirement, you need to still be investing for growth,” states Money magazine in its “Retirement Guide 2013” series published last October. If stocks make you nervous, then finding a way around that concern could be difficult. According to Bankrate.com, one-year CDs offer a 0.76% pre-tax yield. Money market accounts pay 0.49% per year. Yields on two-year U.S. Treasury bonds are even worse: 25%. (Figures through November 13, 2012.) You’d lose out to inflation if all you had in your portfolio were low-yielding investments. So, if you’re near retirement, based on your risk tolerance time horizon, I’d likely recommended a stock investment allocation of 30-40%.

2. Wait before taking Social Security. In general, most individuals should delay receiving their Social Security benefits. Money states that your payments can be 76% higher if you begin taking them at age 70 instead of at age 62. “Your payment will increase by about 6% a year for every year you delay filing before your full retirement age (between age 66 and 67 for most folks),” Money claims. “After that, holding off earns you another 8% a year until age 70.” Of course, your decision as to when to retire is a personal one. What’s best depends on a number of factors, such as your current cash needs, your health and family longevity, whether you plan to work in retirement, whether you have other retirement income sources, your anticipated future financial needs and obligations, and, of course, the amount of your future Social Security benefit. See Publication No. 05-10147, “When To Start Receiving Retirement Benefits,” at socialsecurity.gov to learn more.

3. Consider taking spousal benefit Social Security income early. Assuming your spouse is 62 and has been the lower income earner, and you are 62, you could file for benefits and postpone collecting them until you turn 70. Your spouse can begin collecting 50% of your benefit right now. See “Retirement Planner: Benefits For You As A Spouse” at at socialsecurity.gov.

4. Plan your retirement health care. If you retire before Medicare kicks in at 65, you could have a big expense ahead. “For a 62-year-old couple with one spouse in ill health,” states Money, “premiums run up to $2,300 a month on the individual market.” Ask your financial planner about bringing in a health insurance specialist, or look for an independent agent at nahu.org. Check with your company’s human resources department. You may be able to buy health care coverage when you retire. Remember that long-term care insurance will run about $4,000 a year for a couple in their early 60s, states Money. But if your assets total more than $1.5 million, I say pay for your long-term care as you go.

5. Line up some income. Want to consult? Now’s the time to gather clients and stay abreast of your field. You could also buy an annuity, which is a contract between you and an insurance company that pays out income and is designed for retirement purposes. Finally, practice living within your retirement income budget today. Doing so grounds your retirement planning in reality.

Jerome “Joe” P. Bonnett, Jr., CFP®, ChFC®, is an Independent Wealth Manager and President of Bonnett Wealth Management, Omaha. He is a 1987 graduate of the University of Nebraska with a bachelor’s degree in business administration, finance, and banking. He is a Registered Representative of Securities America, Inc. Member FINRA/SIPC. Bonnett resides in Omaha with his wife, Susan (Engdahl), and their two children, Jake and Claire. Bonnett Wealth Management and Securities America companies are unaffiliated.