Motivation – Who is getting the Hay and who is getting the manure?

Motivation is important in all aspects of our relationships and employment but today I want to talk  specifically  about financial motivation.


Let’s just say a salesperson comes to you and says “We will give you your payroll services for free.” All you have to do is make them your insurance agent!


Or how about “We will give you a new printer if you will agree to a multi year contract and to buy all of your supplies from us!”


Each of these may in fact be a very good deal but you need to look at motivation and how they get paid. Never forget money into the business must always exceed money going out. So if something is offered for free then something else of value may be overpriced to make up for the  financial shortfall. Even Walmart knows this equation when they run a “Loss Leader”.


Let’s look at the payroll deal. They agree to manage all of your payroll (that you currently pay $6.00 per employee per month for)  at no cost to you. You know that payroll services might well be one of the  most competitive industries you can find. That means profit margins are already thin. To do this they only want to become your insurance agent.


Your insurance agent gets between 4% and 5% of your medical premium on average. When you get a renewal increase the agent also gets an increase in pay. If the payroll has already been stripped of any revenue potential what motivation does your new insurance agent/payroll expert have to save you any money on premium increases?


And that new copier! Why do Epson, HP, Brother and others practically give away printers? Because they sell the ink for those machines! If you just make up production cost on the copier with a  really  small profit margin you can make it up on monthly cash flow from ink and other product sales. (Before you call me, that was oversimplified to make a point)


How important is motivation? If it did not work, millions of salespeople would not work on commission and bonus agreements.


You need to ask how people get paid and make sure all that talk about doing something  in your best interest really isn’t just sales hype.
Good advice and quality products that improve your life are worth paying for. The trick is to realize quality hay (which you buy) goes in the front end but manure (you get for free) comes out  the back.


Always best to be getting the hay.

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