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Work, school and the changing dynamics of pay
When you were growing up you probably had someone tell you to be a lawyer or a doctor. The idea being that these professions pay well and are stable - which they do and are.
Market demand has created an environment and new economy that is rewarding performers - not just the highly educated. I have a good friend who is into Internet marketing - she is very good at what she does. One day we had a long discussion about her skill set and experience. I told her she was way underpaid and that her salary level was actually hurting her legitimacy because she should be making much more. She was shocked when I told her what her salary level should be. In the last year she doubled her salary. She now has a job offer on the table that will take her well into the six figures. This all happened in about a years time and it happened because she got educated about her market’s demand and changed her attitude about what she should be earning.
In most cases, what you earn is what you think you are worth not what someone is willing to pay you. That is why you always let an employer name the salary range before you ever tell them what you are currently making. Whoever plays that game best always wins.
I had the same discussion with another friend who was thinking about changing jobs. We talked in detail about his experience, education and skills. When I told him what I would pay him if he worked for me, he was shocked (something in the low six figures) but that shock caused him to think hard about it. I firmly believe that in the next year he will easily double his salary.
How do you get there? Simple. Experience and education. Â
What is experience worth? Everything. Why do you think doctors slug it out in residency for years on end? Why do you think we have management training programs? Why do you think most sales guys start out on the phone in an inside sales operation? You’ve got to practice and get good before you make the grade. Nothing annoys me more than people trying to get around this system. It exists to make you good. Go with the flow. Â
What is education worth? Everything. In fact, it was reported in the book The Millionaire Next Door that 90% of all millionaires have at least a bachelors degree. Education matters. Remember though, education is still only part of the equation. I had a relative who graduated with an obscure bachelors degree and had no real work experience. She went out looking for a job with the attitude that she should be making big money in a management position. She was shocked when all she was offered was a position in the call center at a Fortune 500 company. She only had half the formula down. Education matters but you must gain experience as well. You have to start somewhere.Â
Switching gears…
I have often said that if you want to make great money get really good at sales, which isn’t hard to do and you don’t need ten years of school to do it. I went to MBA school with a guy who sold mortgages. He makes about $20k per month. I am aware of several software companies in Utah that pay some of their sales guys upwards of $700k per year on commission. I know one company that doesn’t have an outside sales guy making under $200k per year. Most ignorant people think of sales guys as the dude on the used car lot or the guy trying to push a TV on you at Best Buy. While you can still classify these people as ”salesman” they are basically playing on a farm team. Sales is the heart of all good companies. It is not uncommon to find a good sales guy making much more than the CEO they work for.
Some people slug it away for years in school simply because they are seeking a “stable” career. If you’re that good you will always have a steady paycheck no matter what you do. Think about it.  Â
When you work on a commission your earnings potential is only limited by your imagination. My boss, Doug Smith at Podango, told me a great story. Years ago he worked at Cendent Technologies. He told me about a smart sales guy who went out and struck a huge distribution deal with a major hardware supplier. He was paid a commission on every piece of software that went out with the partner’s computers. That isn’t even that original of an idea yet the guy made a boat load of money on that one sale.
I realize that entrepreneurship is a tough row to hoe - trust me - I’ve been there. I have also said that wanting to get rich is not a reason to start a company - getting good at sales is much easier path to wealth. However, the vast majority of the wealthy in this country are first generation business owners.
Now I’m really rambling. The bottom line is that the changing dynamics of the economy and the work place have created huge opportunities for anyone who is willing to learn and try. You need to get educated but you don’t need years of schooling to get there. Experience and work ethic will get you farther in this world than anything else.
Speaking of . . . we’re looking for another sales guy/gal at Decade Media.
Left by Russell Page on 01/29/2007URL? What do you sell at Decade?
Left by Chris Knudsen on 01/29/2007[...] Chris Knudsen has a phenomenal post on his blog right now called Work, school and the changing dynamics of pay. Give it a read. [...]
Left by Changing dynamics of pay | Russell Page on 01/29/2007We are overhauling our website right now.
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Left by Russell Page on 01/29/2007