You need to understand your compensation, how you get paid, in order to plan your business and finances. Too many of us believe that it’s not important but, how can you build a good financial plan or business plan without understanding how you are compensated for whatever it is that you do?
Earning a Wage
Are you on salary or hourly? There could be opportunities to increase your income by working over time or maybe there are potential bonuses that could be earned to reflect extra effort. If not, then maybe you need to protect your time and not let your employer steal it from you. Take that time and put it to work in another industry or get involved in a business to increase your income potential. Sometimes your employer needs to hear the word no, as difficult as that is.
Earning a Commission
Do you truly understand how your commission structure is built? In some cases, your compensation will increase as you achieve certain levels or may depend on the category of your product or service offering. Do you truly understand how yours works? Make sure you do so that you can plan your sales approach. Most commission based jobs also have bonus opportunities. What can you take advantage of?
Are you aware that under some circumstances you can take tax deductions for a home office? Don’t make the assumption. There are specific qualifications and forms that need to be filled out. You will need to get some help from your financial advisor on this one.
Sales is a noble profession and has great potential for income. The greatest risk in this profession is you! Are you willing to take the risk?
MLM or Multi-Level Marketing: building a business
Most people collecting a wage have little opportunity to increase their income. There are few management positions available and even those don’t pay as well as they used to. “If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.” – Jim Rohn
MLM or Direct Selling models offer great opportunity to increase your income. The challenge yet again is understanding your compensation plan so that you can plan your business. Rather than the income being greater at the top and less as you go down to the base like most corporations, MLM companies have an inverse income structure. It’s those at the grass roots that have the greater income from the sale. It’s the power of compounding that makes bigger money for those that are motivated to work in teams.
WHat is your business model?
What will your business model be? The mistake most people make is that they don’t treat themselves like a business. There is an old saying, “If it’s to be, it’s up to me”-William H Johnsen.
Whether you choose to accept a wage, commission or build a MLM business, you need to understand how you will be paid in order to set your expectations and manage your budget.
Make it a great day!
P.S. What am I thankful for today? I’m thankful for a nice hot cup of tea. I’m thankful I woke up to a day filled with opportunity. I’m thankful for all the people who have ever touched my life.
What are you thankful for today?