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Why aren't sales people paid hourly? Incentives are better aligned when you get a percentage of the contract value. Not completely aligned (the real estate agen
by mruts 8y ago
Why aren't sales people paid hourly? Incentives are better aligned when you get a percentage of the contract value. Not completely aligned (the real estate agent is going to be optimizing for deal-flow, not absolute highest price), but more aligned than an hourly wage.
- yeahitslikethat 8y agoThe point being missed is everyone contributes a percentage to the value of the house. I'm hard pressed to believe the real estate agent's contribution is 6% of that value. Almost Noone else in the value creation work flow gets paid on percentage. Why then real estate agents?
- mruts 8y agoNo one is forcing you to have one. Many people don’t use them. But more people do. And if you believe that the market is somewhat efficient, people are paying a fee (it’s a lot lower than 6%) because they feel it’s generally worth it.