One of my clients sparked a curiosity about investment and return, compared to planting seeds and harvesting fruit. This may be a curious way to address the concept of people working for someone else, making them rich while they struggle to survive.
This situation is hardly a new paradigm, but it is a thought-provoking topic of conversation.
People work their entire lives for someone else, doing whatever is necessary, no matter how difficult it is to make money for their company. The company is successful after all their hard work, and people revel in their success. After harvesting the fruit, their boss hands them one piece and takes the rest. Three days later, their boss asks them what have you done for me lately? You better get moving, or I will find somebody else.
Perhaps I am mistaken, but this is not an equitable arrangement.
I’ll use myself as an example. When I was in the corporate world and sold $1,000,000 of something, my commission on a good day was 5%. It was often less than that, and sometimes, I had to wait years to get paid, assuming they did not retroactively change the plan. The other 95% plus went to them. It is indisputable that my company incurred costs, but often with margins of 40% to 50%; this gives new meaning to “short end of the stick.”
Like most people who have worked in corporate, I perceived this to be the way it is, with few alternatives.
This is untrue; there are many better ways to make a living.
If we take the example of franchising, just like the corporation, the franchisor needs revenue in the form of royalties, with a reasonable profit like everyone else. Royalties vary considerably in the industry, but generally, they are not different from my commission when I worked in corporate. If you own the business, you get most of the money.
I’m not a mathematical genius, but this is a better deal.
People say well, aren’t you taking more of the risk? The answer is “maybe,” but when you consider that the company can fire you at the drop of a hat in most places, that doesn’t give me a lot of warmth and fuzzy.
If you’d like to learn how to the get Lion’s Share rather than Private Equity or Wall Street, feel free to book some time on my calendar by clicking here on My Online Calendar or calling me at 610-365-7942.
If you’d like to learn more about my business, here’s the link to my web page https://npaur.esourcecoach.com/
In the meantime, I suggest you ponder why you are tilling the soil, planting the seeds, and somebody else is getting the fruits of your labor.
Does the “upsidedown” parable of “The Little Red Hen” come to mind?
Neil Paur
Career Ownership Coach™
The Entrepreneur’s Source
Office: (610) 365-7942
Cell: (845) 825-9549
E-mail: npaur@esourcecoach.com
Websites: https://npaur.esourcecoach.com/
LinkedIn: https://www.linkedin.com/in/neil-paur-a828242
YouCanBookMe: https://neilpaur.youcanbook.me
Personal Change Management.
Helping people make the journey from being an employee to being self-employed.