Where Does Your Real Estate Commission Fee Go - Why is The Commission so HIGH?

Many who have bought and sold properties through Realtors numerous times; even many real estate agents themselves, don't know where the commission money goes. After all, when a property sells for hundreds of thousands of dollars and the commission is tens of thousands of dollars, it seems like there is a terrific amount of money charged as commission -- and there is.

Even many attorneys, who have spent a decade or more in expensive colleges, fought to get through the Bar exam, and then spent years in their profession -- seem concerned that the commission fee is far larger than the attorney fee when all the fees are paid at settlement.

Let's start with the part that few real estate agents understand. It costs the real estate company they work for, between $19,000 and $45,000 per year for each agent to have a license, desk, and the use of company building, parking, real estate, taxes, insurance, utilities and professional support services -- whether they sell anything or not. Since the real estate brokerage commission is split between the company and the agent, an agent must make three to six thousand dollars every month in commissions for the company to break even on that agent with the company share of the fee. And, most importantly, the less productive agents in the office raise the cost for everyone. The other agents therefore, must each earn more to carry the share of the less productive. Many agencies will ONLY allow high quality, top producing agents to work at the company, so that the less successful agents don't pull down the average income of the company investment.

The total commission is split between the listing company and the listing agent ; and the selling company and the selling agent. Usually the commission is split four ways, sometimes it is more. Splits are arranged within each company and for each agent; sometimes there are numerous different percentages and split arrangements in each office.

The company part of the commission is spent on office rent or mortgage, taxes, property insurance, maintenance, signs, radio and TV advertising, bill boards, magazine and newspaper ads, cleaning, supplies, phones, paper, desks, utilities, legal fees and legal insurances, management and support staff as well as numerous memberships, dues, legal fees and expert professionals. Many companies also pay a fee to a franchise company or home office for the right to use the company name. Fees are also paid to regional and national home offices to defray national and regional advertising, management, staff, etc.

In the final analysis, an office that has 10 licensed agents must require those agents to bring in at least forty to seventy thousand dollars in commissions every month to keep the office bills paid!!! I don't know any real estate agents who actually understand or believe this, unless they have personally been responsible for office expenses for a year or more. Responsible, meaning writing the checks out of an account that costs THEM money. Even then it's hard to understand how it all adds up to such a huge figure, but it does. Offices that earn less than these amounts per agent are disappearing fast, few remain as it is.

Computer purchase, maintenance, training and software expenses are now one of the larger expenses. Many offices feel squashed financially, by the financial pressure of adding the purchase of computers, printers, digital cameras, and the maintenance, networking, repair, software and constant management of computers to the already high cost of doing business. In fact, there are even a few of the larger companies who specialize in purchasing other real estate companies who can't keep up with the expense and responsibility of this digital age. Any company or agent who is not keeping pace with digital realty and digital real estate, is not likely to be around much longer.

More and more people rely on the Internet to pre-shop for real estate. You know that. You are one of them and we welcome you to our site.

The purpose of our Web Site is to allow you to educate yourself and pre-shop for real estate before you call us. Let us know if you want us to have anything else on our site for you. We'll listen! As the Internet becomes the favored tool it is also the most important tool for buyers -- radio, print and sign ads become less workable. Smart sellers now want to see what a Realtor is doing on the web before they choose which Realtor to list their property for sale with.

Advertising and marketing expenses have grown tremendously over the years. For instance, when I first got into the business, thirty years ago, I started out helping to manage a real estate, building and developing company. At that time, over 60% of our phone calls came from signs on the property. Also at that time, bulk mail cost an average of thirty cents a piece to create, print, post and send and our response rate was often 3% or more!!! Now less than 10% of our calls come from signs on the property. Bulk mail averages over a dollar a piece and mail response is far less than half of one percent. In fact according to one national Realtor's marketing research team, real estate mailings now range in response from one in a thousand to one in three hundred. The best results costing the most to obtain because of expensive mailing pieces with full color, pictures, etc. One recent survey showed that average cost per resonse to a mailing was $2,000 - whether it was a lot of cheap postcards or fewer nicely printed color pieces.

Since 1971, I have studied and researched marketing and sales via schooling, reading and keeping good records of expenses and results. Thirty years ago the average cost of newspaper advertising to get a phone call was seven dollars. One in every ten calls coming to a top agent, resulted in an appointment. One in five appointments resulted (for a top agent) in a sale! Of course these were averages based on the best advertising, telephone and selling techniques that were available. Often the averages were not as good in other companies or for other agents. So the average cost of a sale using just print ads was about $350 thirty years ago. For my office of 50 agents in 1979, the average print, signage and bulk mail advertising cost had risen to $500 per call.

Now the average cost of one phone call from a print ad is from two thousand to five thousand dollars and that is growing by the month! So even if one could get one in ten calls to result in an appointment, and one in five appointments to result in a sale, the cost of advertising per contract would be phenomenal.

The nicer the property, the more attractively priced it is or the better it is located the more response the ad will get. Luckily for print ad salespeople and newspapers, few Realtors keep records of what advertising costs and results are. Singage is still a factor in obtaining calls and used to be the most cost effective. Therefore many Realtors will seek to get a listing in a hot area, no matter what the listed price, just to get a sign on the property! Can you blame them?

Print ads are done mostly to please the seller. After all the seller wants to see something tangible as proof that the Realtor is spending some money before that big commission is paid out at settlement. We certainly can't fault them for that either, can we? Interestingly enough, those sellers who price their property highest for what it is and who are located farthest from where the most buyers want such a property, are quite often the ones who most want to see their property advertised expensively!!! In the case of an overpriced property that is not well located -- thousands of dollars can be spent in advertising with not one phone call resulting! It's just part of our business and always has been. Ironically those sellers who have property priced the highest for it's location and want the most advertising, are often the ones who want to pay the least commission too.

You may find this all unbelievable! It is! I've been doing this business all my adult life, going to courses every year, working in the business in many parts of the country as a property specialist -- and I still can't believe the costs and conditions of this business. I am amazed every day by all this!

Each company pays their agents differently but the overall or gross commission as it is called is split in some fashion between the company and the agents. The expenses are split too. The most productive agents usually get a larger split of the commission, relative to the company. Some companies offer top agents the right to rent office space, usually at least twenty thousand dollars a year, and keep all the commission! And, top agents almost always spend a far larger percentage of what they earn for advertising, marketing, education and other business expenses that are designed to bring them future sales and income.

The best agents, the best ones for the seller to have, are those who do everything possible to let all the rest of the Realtors in the area know everything possible about the property they have for sale so that other Realtors can try to sell it too. When two Realtors from different offices are involved in the sale the commissions are split in half again. Typically each of the two companies involved would split the commission and then each of them would split with the agents involved. Often there are other commission splits payable as well to a referring agents; an agent who referred the listing or one who referred the buyer. To give you an idea of what all this means, when I averaged all the commissions I made over the last several years I averaged three quarters of one percent of the sales price for the properties I sold - BEFORE expenses! Now you can see why we all try to sell millions of dollars of property each year!

In most areas there is another expensive service that the companies and the agents use -- the Multiple Listing Service or MLS. This is where all the agents have agreed to put everything they have on a centralized and searchable computer so that all agents can have access to all properties. Once you choose your Realtor that person can access everything in the central computer files if they are a member of the MLS. Some of the smaller companies are not members because of the cost.

From the proceeds of commissions earned by the sales and listing agents, they then pay for their auto expenses, MLS fees, annual county, state and national Realtor dues, commercial licensing fees, business licenses, electronic lockbox keys, advertising, insurance, legal fees, computer related expenses, phone bills, etc. In the final analysis a Realtor who sells two million dollars in real estate a year is usually working diligently and effectively for his clients for only average earnings in area where she lives after all these expenses. And there are others; client gifts, professional dinners and luncheons, Chamber of Commerce dues, and numerous charities who consider that Realtors are the most likely to donate heavily to all the charities... since they have so much money.

Selling Real Estate is a life style and profession most of us would not trade for anything. And there are some of us who have made a nice living over the years at this wonderful job. It's all about helping others. If we do it well, we are paid well, and if we do it very well we are paid very well! Happily I have been working as a Realtor since 1972 and I LOVE it.

We know that for us we have the best job on earth and we do it our way. We use primarily the modern tools of the Net, Multiple Web sites, all the latest devices and techniques, MLS, several computers, as well as selected traditional mailings, some print ads and several professional assistants all to help our clients better and faster!

May we help YOU? We hope so! And, we hope to get paid when we do!

Copyright 2000-2005 by www.JodyHudson.com

The Web Of Power: Council On Foreign Relations, Bilderberg, and Trilateral Commission

"Oh what a wicked web we weave when first we practice to deceive." Shakespeare's immortal wisdom rings eternal. The web I refer to in Shakespeare's quotation is the international corporate/banking web of power and global dominance; the "we" refers to several little-known groups in our society that conduct the weaving. Who are the faces behind the military industrial complex, and what common traits bond them? Who guides our foreign and domestic policies, orchestrates the wars, the chaos, the suffering, the poverty, while reaping the financial benefits at the expense of so many others?

Gliding the halls of government and commerce like some ethereal ghosts, a select group of powerful wealthy wield their might through clandestine means; their cabal is often described in obscure terms such as the Invisible Government, the Insiders, the Power Elite, and the Establishment. These men and women would like the misinformed public to believe it's all a mystery wrapped in a riddle inside an enigma. Yet could their goals simply be transparent and rudimentary; power, greed, and retaining control of their amassed wealth at all costs? Only the machination that accomplishes these goals appears complex: the interwoven infrastructure, the ability to manipulate, to distort the truth, to polarize groups, always diverting the peoples' attention from their true nature and identity. This article focuses on three of their primary organizations that develop their cabal and set into motion their objectives: the Council on Foreign Relations, the Bilderbergers, and the Trilateral Commission.

Council on Foreign Relations: The Council on Foreign Relations, from hereon referred to as the CFR, was founded in 1921. It's architect was Colonel House, the behind-the-scenes power to Woodrow Wilson and representative of the turn-of-the-century American industrialists and bankers, including J.D. Rockefeller, J.P.Morgan, Jacob Schiff, and Paul Warburg.

The late Carroll Quigley, Georgetown University professor and CFR member, stated in his book Tragedy and Hope, "The CFR is the American Branch of a society which originated in England, and which believes that national boundaries should be obliterated, and a one-world rule established". Simply stated, the goal of the CFR is to influence all aspects of American society in such a subtle, gradual process that one day Americans would wake up and find themselves in the midst of a one-world system.

Indeed, for the past eighty years, the majority of cabinet positions have been held by members of the CFR, as well as past presidents, both Republican and Democrat. Certainly, as a leading CFR and TC member, Kissinger's own admittance that "power is the ultimate aphrodisiac" and "Middle East oil is too important to be left in the hands of Arabs" add little doubt to this gang's truer motives.

Quigley also makes reference to The Establishment members' desire to stay "close to governments," an indictment that The Establishment gains and controls its privileged status through political power rather than market competition. Many of the self-proclaimed pillars of capitalism are in reality capitalist failures who seek and constantly rely on bailouts from the American taxpayers. Had Ken Lay's Enron, Dwayne Andreas' ADM, Jack Welch's GE, George Schultz's Bechtel, David Rockefeller's Chase Bank, or the recent airline industry's CEOs not seek bailouts, corporate welfare and exclusive government contracts, laundered through national security and foreign policy, they would have floundered under a real competitive marketplace. However, thanks to their brotherhood CFR connections, they continue to profit.

Members come from predominantly affluent circles and upbringings, as well as from those individuals with a self-serving sense of extreme ambition, elitism, and ultimate disdain for humanity. Its membership represents the interests of a governing American upper social class which owns a disproportionate share of the country's wealth, contributes a disproportionate number of its members to governmental bodies and decision-making groups, and dominates the policy-making process.

You may join the CFR only by invitation, and although the CFR has just 4000 members they are nearly all current and former senior U.S. government officials who deal with international matters, renown scholars, and leaders of business, media, human rights, humanitarian, and other non-governmental groups.

The grand political facade is best exposed by the fact that George Bush Sr. pledged both Bill Clinton and Ross Perot's membership in the CFR club.

Bilderberg Group: Originally named for the Dutch hotel where the first meeting was held in 1954, the Bilderberg meeting is a private annual gathering for the politically and corporate influential, with revolving representation from the world's western leaders in global banking, education, politics, business, military, and the media.

Bilderberg Group founder, Prince Bernard of the Netherlands, a protege of the Rothschild family, once said, "It is difficult to re-educate people who have been brought up on nationalism to the idea of relinquishing part of their sovereignty to a supra-national body".

Many political careers seem to dramatically soar after attending their first Bilderberg meeting, including Margaret Thatcher, Bill Clinton, and Tony Blair. Once the groomed politicians meet the Establishment's approval as their chosen representatives, the machination is set into motion to convince the various citizenry's to elect these candidates. Henry Kissinger's 1991 Bilderberg address underscores their one-world government intent by saying "today Americans would be outraged if UN troops entered Los Angeles to restore order; tomorrow they will be grateful! This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all people of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by their world government." This scenario is a prophetic blueprint to our current war on terrorism's stratagem.

Though formally claiming their meetings are only healthy debates, even its members concede that Bilderberg debates do have a global impact on political, economic and military policies, a debate that circumvents our democratic process. At previous meetings, a common European currency and US-China relations were discussed before their respective governments became involved.

Trilateral Commission: Founded in 1973 by David Rockefeller, Zbigniew Brzezinski and others to foster cooperation among the big three industrial powers of the U.S., Europe and Japan, utilizing its future influential members to design a multinational consolidation of the four centers of power--- political, monetary, intellectual, and ecclesiastical--- in the formation of a one-world government.

Overlapping membership frequently occurs within these three organizations, as throughout corporate board rooms, helping to consolidate their interests. Both the Bilderbergers and the Trilateralists insist on anonymity of its attendees, no media coverage, and closed-door meetings. If their discussions are truly for the common good, why not tell the world?

Revolving door politics and influence is a golden key of opportunity for the members of these stealth organizations. In his final address, President Eisenhower warned about the dangers of such a controlling organization in government. "In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for disastrous rise of misplaced power exists and will persist."

His warning was dutifully noted but few heeded his words. Kennedy appointed Dean Rusk, president of the Rockefeller Foundation, to be his Secretary of State, Ford Motors president Robert McNamara, who later served as head of the World Bank, was Kennedy's Secretary of Defense, Investment banker C. Douglas Dillon was Kennedy's Secretary of the Treasury.

In recent administrations, presidential cabinet members have included George Schultz with Bechtel, Dick Cheney with Haliburton, Robert Rubin with Citibank, and Bush Sr., Frank Carlucci and Jame Baker III with the Carlysle Group, each making millions from their insider influence peddling in the private sector. Even President Obama's administration is heavily weighted with CFR members.

The illusion of ideological differences between the two political parties that is conveyed to the unsuspecting American public is best summarized by the advice of former CFR and cabinet member Henry Cabot Lodge to his colleagues "Is there anything we can APPEAR to do?" This charade is given credibility and legitimacy by the controlling CFR influence of top management within corporate media. In reality, a uni-party collusion between the CFR represented politicians and their corporate counterparts continues to solidify and presses its totalitarian agenda.

To insure their power, the Establishment covers their bases. For decades, presidential candidates from both parties have been CFR members. When Bush, Cheney, McCain, Bradley, Gore, and Lieberman, all CFR members. touted the corporate globalization agenda such as NAFTA, FTAA, WTO, World Bank, ad nauseum, one could question where their loyalties might be.

Even in the event that a presiding president's administration gets caught in some unsavory practice, the chosen legislators that head the investigative committees are often members of the CFR; thus, the truth is never revealed and the issue is quietly swept away. During Clinton's Whitewater investigation, Jim Leach, House Republican from Iowa (CFR) directed the investigation. During George W. Bush's tenure, Lieberman (CFR) Dodd (CFR) and Levin (CFR) headed committees that investigated the Bush Administration while Paul Volker, former Federal Reserve and Trilateral Commission chairman, was named chairman of an oversight committee for the International Accounting Standards Board to review recent lapses in accounting ethics.

The governmental solution presented for disciplinary or reform action is often presented by one of their own foxes watching their henhouse, assuring no constructive changes are even implemented. Through the influence of revolving door politics, corporate executives are assigned to direct public regulatory agencies that dismantle the very laws that were designed to protect the public from the abuses of corporations.

For a quick examination into the media's influence on public opinion, consider the virtual monopolistic view of the CFR promotes through mainstream media. Think you're getting the true scoop on the Sunday talk shows? They might as well call this political commentary the CFR Misinformation News Hour. You have CFR guests from both Republican and Democratic parties interviewed by CFR journalists (George Stephanopoulos, Diane Sawyer, George Will) with CFR commercial sponsorship (Archer Daniel Midlands, Merrill Lynch, IBM, etc.). Switch to PBS, you say? Jim Lehrer (CFR) will also make sure the incriminating questions are never asked.

Under the guise of risk management, multinational corporations' global conquest may encounter risks, so when private insurers are unwilling to accept the risks, corporations turn to national and multilateral government agencies which offer investment guarantees and political risk insurance backed by taxpayers.

These companies have even cornered the market on the cures for the very ills they create. General Electric, which owns four of the largest air-polluting companies, is the largest producer of air pollution equipment. Dupont, one of the largest toxic waste producers, has created a lucrative line of toxic waste disposal services and Westinghouse, which earns its money selling nuclear weapons, also profiteers from selling equipment to clean up its mess. Also, alcohol companies own rehabilitation centers and tobacco companies own cancer clinics. A vicious cycle.

The processes of corporate power do not work in isolation. The economic and legal mechanisms that allow the privatization of the commonwealth, externalization of costs, predatory economic practices, political influence-buying, manipulation of regulation and deregulation, control of the media, and the use of police and military forces to protect the property of wealthy, all of these work synergistically to weave a complex web of power. The institutionalization of multinational corporations and banks is exemplified through the structural adjustment programs of the World bank and the international Monetary Fund. These programs channel more of the debtor country's financial and productive resources to war debt payment, an extortion process which ultimately opens easy access for American and Western European companies to exploit these countries' cheap sources of labor and raw materials.

These world institutions serve to extend the concept of colonialism or feudalism globally, circumventing other countries', (including our own) national sovereignty, representative democracies, and ultimately the citizen's wishes, while instead serving the corporate elite and wealthiest shareholders' interests. This financial blackmail is dictated by the international banking leadership with such a ruthless fanaticism to the unsuspecting governments and citizens, the results are consistent. The countries are left in financial and social turmoil, in places as diverse as Bolivia, South Korea, Russia, Nigeria, and Mexico. The shallow premise that these world financial institutions' leaders are guided by benevolence is tragically false, easily recognized when one peruses the disastrous reality of these institutions' actions. in a leaked internal document, CFR member Lawrence Summers proposed in 1991 that the World bank encourage the migration of dirty industries and toxic waste toward less developed countries

Our present reality so strongly resembles a complete Orwellian 1984 chapter and verse, that you wonder if his warning has become the how-to manual by the very people Orwell warned us about; global alliances and perpetual war, political and mainstream media double-speak and perverse definitions of "war is peace" and "peace is war" have become today's normalcy.

Fortunately, this darker tale of humanity has a hopeful side, a hope that resides with us. The 1999 World Trade Organization (WTO) protest in Seattle marked the consolidation of previously diverse social, labor, and environmental activist groups, each finding a common enemy within the ranks of the multinationals and their institutions, creating the birth of the anti-globalization movement. The movement is organized locally, nationally, and internationally, reaching across borders, creating a vibrant web of organizations, communities and networks. People are demanding greater participation in the decision-making process, including ways to exert more democratic control over the multinational corporations as well as questioning these world institutions' policies and legitimacy.

Another recent effort by individuals has been conducted at the shareholder meetings. Small shareholders represented through labor pension funds have organized and applied pressure upon corporations to base their decisions on more humane practices rather than always the bottom line.

In recognition of the citizen's abandonment by our political leaders, a grassroots groundswell underpinning the Iraq anti-war protests was formed and currently, the Occupy America movement has gained momentum and must continue.

What else can we do? Possible solutions could include a public outcry demanding an impartial inquiry and full disclosure of all CFR, TC and Bilderberg members and their associated activities.

We can strengthen ourselves as individuals, becoming more informed of the truth and mitigating our vulnerabilities as to being manipulated as voters, as consumers, and as citizens. Hey, and we could always give them a call or pay them a visit. Here are their addresses:

Council on Foreign Relations:

Harold Pratt House, 58 east 68th St. New York, NY 10021 Ph# (212) 434-9400 Fax# (212) 861-1789

Trilateral Commission: 345 East 46 St. Ste. 711, New York, NY 10017 Ph#(212) 661-1180 Fax#(212) 949-7268

In parting, George Orwell, in his wisdom, may have left us, the people, with some equally powerful seeds to sow..."In times of universal deceit, telling the truth is truly a revolutionary act."

Michael McGuerty is a writer / photographer living in the Santa Fe, New Mexico area.
Please send any comments to: pecoskid@juno.com

How to Increase Commissions in Commission Only Sales: 5 Eye-Opening Keys to a Secure Sales Career

Allen Foster, 39, followed his dad, John, into a lucrative career in insurance.

"He raised three kids on commission-only income, had total independence and control over his time, made a darn good living...I wanted that for my family too," shares Allen.

In 1996, John was able to retire on his renewal commissions-something unheard of for most career producers today.

New regulations have not only cut into commission payouts, but corporate politics, ever-changing commission-structures and rising quotas have led sales professionals to change firms and product lines more often than their predecessors-consequently losing their client base and vested potential in the process.

"To say things have changed since my dad's days of selling insurance would be an understatement," says Allen. "Companies aren't loyal to their agents anymore, and in turn, agents aren't loyal to their company. Since 1999 I've been with three different agencies-and that's less than most guys! It sounds unbelievable now, but in his entire 27 years, my dad was with two companies!" Allen laughs in disbelief.

And the time flexibility he remembers his dad having?

"Almost non-existent," Allen states matter-of-factly. "When I'm not dealing with corporate politics to hold on to my territory, in mandated continuing education classes, and keeping up on the ever-changing rules and regs of the industry, my time is spent trying to meet with an existing or potential client."

Technology and the internet has led to prospects rarely answering their phones, calls rolling to voicemail, and sales needing eight to twelve contacts.

Add in legislative and regulatory changes in the mortgage, real estate, health insurance and annuity markets, and sales professionals in every industry have been facing an up-hill battle for some time.

And in the midst of all this turmoil, what are sales professionals told to do?

Work harder.

Which is exactly what most commission-only producers do when the going gets tough.

Commission sales has always attracted a unique breed of sales professional. They are driven, competitive, confident, "think-outside-the-box" people who desire to control their own destiny. Many have backgrounds in competitive sports or the military, and tend to be initiative-taking leaders.

But in today's downright harsh sales environment, even the go-getters are struggling.

"Like my dad, I'm really good at what I do. As the proverbial saying goes, I could 'sell ice to an Eskimo' if I wanted to. But to make a decent living in the 'old school' way just doesn't cut it anymore. And I've come to terms with the fact that there's no way I'll see retirement renewals on any of the insurance business I write today. It's tough..."

Ron Agypt, vice president of broker sales at Aflac, echoes Allen's sentiment. "[Commissioned] agents are definitely feeling the squeeze...insurance companies have already started paying flat fees instead of commissions, and they are getting pressure from clients who are really saying to them 'We need more for less.'"

While some commission-only sales careers, like travel agents, have gone the way of the Dodo, others are forced to completely re-evaluate how they do business and get paid.

In Idaho, for example, where insurers began paying flat fees a few years ago, one agent told the Wall Street Journal that he initially suffered a 20 percent drop in income...

Fortunately, due to his "out-of-the-box" thinking, he was able to eventually make this up by diversifying his product portfolio.

In addition to selling his "traditional insurance" services, he partnered with a company to sell voluntary, non-traditional add-on products to his existing clients; this move also enabled him to expand his client base into other business industries that had previously been too small for his line of services and not worth his effort.

To make up the lost income most commission sales professionals are used to generating, says Alan Katz, once president of both the National and the California Associations of Health Underwriters, will require that they "take a horizontal approach to change: diversifying your product portfolio so you are selling more products to the same client."

And by no means does this relate just to health insurance.

In the annuity industry, the low interest rate environment has made business much less profitable for issuers; new regulation has increased costs leading to consolidation. Because fewer companies are competing, products are less competitive in terms of rates, commissions and innovative features.

The overall resounding message is clear: Instead of just embracing the masochistic opinion to work harder for the same or less amount of money, commission-only sales professionals must start evaluating portfolio-expanding services that enable them to offer value to their clients, and be adequately compensated for doing so- regardless of the economy, political decisions, or corporate politics.

Let's examine 5 key distinctions independent commission sales professionals should look for when partnering with a voluntary benefits company to fill the gap in their commissions:

1. Small Business Niche Market - With insurance brokers across the United States being told that, due to health reform, their small-group commissions will drop by 15 percent starting in 2011, many small group producers are moving to mid-sized companies, and mid-sized producers are moving to larger groups.

Instead of running with the herd, the smart move is to evaluate how this deserted market can now open up opportunity for producers to:

• take advantage of less competition

• offer voluntary, niche-focused benefits to smaller market segments

• fill their commission gap

Working with a company and sales support team that focuses on the small business niche can offer huge potential to commission-only producers.

2. Add-On or Door-Opener Product Line - There may be some commission sales professionals who decide to leave insurance sales altogether-but most won't. And the truth of the matter is that most other commission-only sales professions (real estate, mortgage, advertising, merchant, etc.) aren't faring much better...

Even though implementation of health care reform is three years away (2014), the reality is that many of those painful compensation changes are already being implemented. Attractive, motivating commissions are going by the wayside and being replaced with flat fee payouts.

For commission sales producers, this means the time is now to start looking for additional services to leverage. Look for services that can:

a) Be added-on to existing client's benefits to enhance service value and, in turn, increase up-front and renewal commissions

b) Serve as an appealing door opener to help commission sales professionals get invited in to previously closed sales opportunities

3. Flexible Work Environment - In today's tech-savvy business marketplace, there is little reason why trainings and meetings can't be done via webinar, email, or iPhone. A sales team that demonstrates this work flexibility is key to a vibrant, commission-only sales future.

The growing rigidity of the traditional sales environment goes against the very nature of who an independent commission sales professional is. Give them reasonable goals, motivation, effective tools, and let them go! Sales is a results-driven activity. To maximize those results requires a work environment that is as flexible as possible.

4. Innovative Training - This does not mean training on how to sell. Independent sales professionals know how to sell. Innovative training involves providing relevant, up-to-date insights on how to communicate more effectively with your niche market. This could relate to using social media, CRM, email, or other proven prospecting and nurturing strategies that move way beyond old, worn-out tactics.

Training that is cutting-edge enhances already well-established sales skills, saves time, and leverages the expertise of like-minded sales professionals. Innovative training helps producers not only connect with quality prospects, but helps drive more sales and generate increased revenue.

5. Renewal Commissions - For most independent sales professionals, renewal income is like Santa Claus-it existed in one form or another long, long ago, but now, the concept of it has been hyped-up, twisted, corrupted and devalued.

It's true that for most commission-only producers, their company's commission structure, turn-over policies, increasing policy rates, and fickle client base has made renewal payouts impossible.

But the reality is that, "Yes, Virginia, renewal income really does exist." And with commissions in almost every field of sales being significantly reduced, independent sales professionals must think in regards to short- and long-term financial rewards and partner with a company that does too.

Alex Gardner is National Marketing Director at http://UnitedSalesPros.com where he's collaborated for 10+ years with a nationwide group of active, top-producing, commission-only sales enthusiasts who earn their living making sales.

United Sales Pros provides a platform for independent, commission-based sales professionals in any industry to access cutting-edge, relevant, valuable, and applicable resources to help them advance in their sales career.

We invite you to take full advantage of the fresh ideas that are shared on http://UnitedSalesPros.com, offer your own commentary and insights, and to suggest topics you'd like to see addressed related to commission-based sales.