As a sales rep, you have to reconcile the fact that you’re trying to make as much money as possible with the fact that you can only make a finite amount of sales in a given quarter. The sky isn’t the limit — but however far the best of your abilities can take you is.
But in some cases, the money your company allows you to make stops short of your full potential. Some businesses impose a cap on commission — a strict limit on what you’re allowed to earn. Generally, that’s not the way to go.
Here, we’ll learn about the benefits of uncapped commission, some insight into why some companies might not be interested in it, and the pitfalls of including the term in job listings.
A cap on commission might mean a cap on effort. That’s why uncapped commission can be a powerful incentive for sales reps to exceed expectations. If a sales rep’s commission is capped at $50,000 for $500,000 worth of sales in a quarter, what incentive do they have to try to go beyond that?
Many salespeople won’t be receptive to a pat on the back, and a trophy that doesn’t come with some sort of tangible incentive might not be enough to set your highest performing reps on the right track. A financial reward is often the most powerful motivator for reps — leaving commission uncapped can provide just that.
In many cases, uncapped commission is a given. Several — if not most — companies don’t put a lid on how much an exceptional rep can earn for going above and beyond. Businesses should want the most out of their reps, and you won’t get that by imposing hardline restrictions on compensation.
Why would a company want to cap commission?
It wants to avoid overpaying its reps.
That’s probably the bluntest, most obvious answer to that question. Companies often want to look out for what they believe to be their most immediate financial interests. In many cases, they want to be able to present definitive budgets and save money. But that strategy often backfires.
A sales rep who closes a massive deal only to find out they’re going to receive a fraction of the commission it warrants is going to be disappointed. They will be less interested in giving the necessary effort to bring in as much business as they can.
That loss of initiative often means less revenue from and lowered morale within a sales org, so it’s fair to say that capping commission is often counterintuitive and unproductive.
Why You Should Avoid “Uncapped Commission” in Job Descriptions
Job seekers should be wary of any job description that touts uncapped commission as a major selling point. In a lot of cases, that could very well be a big-time red flag. Uncapped commission is often an implied benefit for most sales positions — it’s almost always a given.
Advertising uncapped commission is like bragging about providing salespeople with a company computer and an office with Wifi access. Sure, it’s important to have, and a sales role would be tougher without it, but it doesn’t look particularly impressive to prospective candidates.
For businesses in the hiring process, putting “uncapped commission” on your job listing can make you look cheap and spammy. It might lead candidates to believe they’ll be underpaid — that you’re unwilling to state what a sales rep at your company can actually expect to earn.
Instead, your job descriptions should be straightforward and honest. Detail factors like the types of insurance your company can provide, the amount of PTO candidates can expect to see, other financial incentives like tuition reimbursements and commuter benefits, and any other meaningful incentives that you feel your potential hires should know about.
As far as mentioning compensation, be frank with candidates. Give them a picture of the pay structure you intend to offer them, like “base plus commission.” And consider giving them a picture of their on-target earnings — the average amount of money they can expect to earn from their base salary coupled with a realistic figure of their potential commission.
Capping commission can mean putting a lid on sales reps’ effort. In most cases, salespeople will be less inclined to pursue that extra deal or push themselves that much further if they know they won’t be appropriately paid for it. If you’re a sales leader interested in getting the most out of your reps, it’s in your best interest to leave commission uncapped.
Uncapped commission generally means uncapped effort. If you want that kind of commitment out of your team, don’t restrict that element of their compensation.
Original Source: blog.hubspot.com
Money is a fundamental necessity; we need money for food, for clothing, for education, for healthcare and for sustaining our lifestyles. To make money, we need to put in the dedication and the hard work into our jobs.
We are all so actively engrossed in the process of making more money that we often put other important things like our passions, hobbies, families and friends, in the backseat. Aren’t all those things the very reason we were earning money for, in the first place? What if people could have a secondary, or passive source of income that didn’t require active involvement?
For most people, the concept of passive income has an element of mystery and intrigue to it. For others, it's the way of life. In simple words, passive income is the money earned on an investment — or work completed in the past — that requires little work or no active involvement to generate ongoing revenue.
Active income, on the other hand, is the hard-earned money that one earns in exchange for performing a service. This includes wages, tips, salaries, commissions, and income from freelance projects.
There are many ways to earn a passive income. Display advertising, ebooks, e-courses, YouTube channels, etc. But they require skill, and not everyone is skilled for the same. One surest way of earning a passive income is from wealth, which can be taught using skills and systems.
Having a source of passive income can completely turn things around for people. Think about it — if you could put in some upfront work into a project that would generate income for years to come, would you pass up on that opportunity? If you are inclined to put in the early efforts, passive income could prove to be significantly beneficial.
It could help sustain your lifestyle, and it could give you that extra money you need to buy something you have always wanted. Most importantly, it could give you a financial cushion to fall back on in times of need, such as the present economic downfall due to the COVID-19 pandemic.
You may consider investing your existing wealth in various assets like equity, debt, real estate, gold, and insurance in a way so that you make sure that there is a cash inflow of certain amounts at regular intervals in the form of passive income.
Investing your existing wealth into various assets according to your needs and risk-taking ability and making money out of it is easier than trying to learn a new skill altogether.
However, generating a passive income from existing wealth cannot be achieved through a shortcut. It still requires involvement and hard work in the initial stages, but if you are willing to make the effort, you could end up making money while you sleep. And that’s the goal of passive income.
Ways to earn passivelyInterest earned from investments/lending
Earning interest on investments is one of the most common yet effective forms of earning passively. Most people open Fixed Deposits and start contributing to a retirement fund early on in their careers. The interest earned on investments can add up to a significant amount in the long run.
Contribution in PPF, EPF, NPS, etc. all are classified as long term investing with a goal of regular savings and future income from interest earned. Even lending money just like banks to other institutions in forms of debentures fetches higher rates of return versus the banks.
Also Read14 passive income ideas for earning money as you sleepRental income
While most people invest in property for the outcome of appreciation of property, it is an outcome they can't control. They often forget that making money from rental income is a great way to create monthly passive income.
Although investing in property presents its own challenges, like finding a tenant who can pay the required rent and maintaining the property, it can still be a strong source of passive income and worth the initial effort. One could pull in some significant money in the form of rent money. Investing in stock markets
Dividend stocks are one of the easiest ways for people to create a passive income stream. As public companies generate profits, investors earn a portion of those profits in the form of dividends. Investors can then decide whether to keep the cash or reinvest the money in additional shares.
This style of investments gives investors long term growth along with annual dividends from the companies they have already invested in. Many people nearing retirement like to buy PSU companies that are known for paying high dividends but are weaker in comparative growth.
Also ReadThe science of stock trading during volatile times
Over the last five years, investing in gold has also generated passive income for a lot of people. Investing in gold bonds is a new style of investing, which can fetch from 2.5-2.75 percent yearly interest income, which is at par with the bank interest on many national banks on date.
This is a unique way to not only enjoy the benefits of investing in gold digitally but also getting interest to do so.
Many people consider using the traditional style of investing in insurances as a part of their tax deduction and buy insurance plans that start paying yearly income back to them after a certain time. The most interesting thing about this is that the investment is tax-free, and so is the income received from it. Hence, this arrangement is very lucrative for the individual, especially in the high tax bracket.
Passive versus active incomeUnlike passive income which takes years to build, an active income ensures that you have a consistent income stream and allows you to make money in a short and defined period of time i.e. your salary. Often, an active source of income is necessary in order to lay the foundation for a passive source of income.
For instance, to earn passively from investments, you need to first make enough money to invest. However, a lot of people still look at active income as the only option and are oblivious to the notion of earning passively. In this day and age, people should be looking at both revenue streams in combination.
There comes a point in life when one starts feeling the financial pressure of balancing savings and expenditure. If implemented correctly, passive income can certainly provide that extra stability that one may be looking to achieve.
(Edited by Saheli Sen Gupta)
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
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Original Source: yourstory.com
Katie Canales/Business Insider
Home improvement site HomeAdvisor found the 10 most popular US states for tiny home living.
The site zeroed in on the states with the most Instagram posts that were tagged with the #tinyliving hashtag.
Some of the best US states for tiny living include California, Florida, and Texas.
The tiny home movement has gained traction in the US in recent years, offering a lifestyle that’s potentially less expensive, more mobile, and more sustainable.
Visit Business Insider’s homepage for more stories.
The tiny home movement has captured the hearts of Americans in recent years.
Tiny homes are defined as abodes that are under 400 square feet. The movement has picked up steam, with many opting for the tiny lifestyle to save money or to be able to travel freely. Sustainable energy use and waste systems are also key drivers, though the tiny home life isn’t always as glamorous as it looks.
A 2020 report from home improvement site HomeAdvisor zeroed in on the most popular states for the tiny home life — or at least the states with the most active tiny home Instagrammers. HomeAdvisor scraped Instagram for posts tagged with the #tinyliving hashtag and tagged somewhere in each state, such as in a city or a restaurant. It also considered the amount of activity the posts got through comments and likes. The site didn’t factor in posts that didn’t have a location tag.
Here are the top 10 most popular US states for tiny living, according to HomeAdvisor.
Mike Morgan/For The Washington Post via Getty Images
HomeAdvisor found 1,613 photos tagged in Utah or roughly 3% of all photos scraped by the home improvement website in the US.
Tiny homeowners are tasked with making sure that zoning ordinances in their desired location allow them to legally live in the small abodes.
According to a 2018 Daily Herald report, Utah was a bit slow to adjust city codes to accommodate smaller homes. But progress has been made in recent years, and now the state is riding the tiny home train full throttle.
9. New York
Christina Horsten/picture alliance via Getty Images
The report found 1,787 photos with the hashtag #tinyliving in the state of New York.
State officials recently adopted Appendix Q: Tiny Houses, a measure legitimizing safe building standards for 400-square-foot houses on foundations, according to B&B Tiny Houses. The appendix became law earlier this year.
8. North Carolina
Mike Morgan/For The Washington Post via Getty Images
According to a 2019 memo from the North Carolina Department of Insurance, “tiny homes are acceptable as permanent single-family dwellings in North Carolina provided they meet the following minimum requirements.”
Tiny home builders in the state, like Wishbone Tiny Homes in Asheville, offer various models and customization options.
See the rest of the story at Business Insider
Former Under Armour CEO Kevin Plank just sold his Washington, DC, mansion for $17 million — 60% of its 2018 asking price. Take a look inside.Oprah Winfrey built a $2.6 billion fortune off of her beloved talk show. From a $25 million private jet to multiple island homes, here’s how the media mogul makes and spends her fortune.We asked a career expert to build the perfect resume. Here’s a template you can use to update your CV and land a dream job.
SEE ALSO: An Austin startup can 3D-print tiny homes in 24 hours for a fraction of the cost of traditional homebuilding — here’s how Icon could revolutionize affordable housing
Original Source: feedproxy.google.com
Liam McBurney/PA Images via Getty Images
Workers who are most at risk of severe cases of COVID-19 are likely to be the first who returned to on-site jobs, The New York Times reported.
Many receive health insurance through their employer and can not afford to lose it if they do not return to work, despite the health risks.
Despite the impact of the coronavirus, an AP poll found that views on healthcare have remained the same since prior to the outbreak.
Many still prefer a private health insurance system over public government-funded ones.
Visit Business Insider’s homepage for more stories.
Employees who are most at risk for the coronavirus, will likely be some of the first to return to work so they can hold on necessary health insurance, The New York Times reported.
Last month, Patti Hanks, who is 62 and had recently gone through chemotherapy returned to work at a furniture story so she could hold on to her insurance. See the rest of the story at Business Insider
NOW WATCH: Inside London during COVID-19 lockdown
Austin extended its stay at home order until August after a spike in coronavirus casesRep. Ilhan Omar’s father has died from COVID-19 complicationsNYC’s contact tracers have been told not to ask people if they’ve attended a protest
Original Source: feedproxy.google.com
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Editor’s note: This post has been updated with current information and experiences.
Unexpected overnight stays caused by severe flight delays or cancellations. Buying clothes and other personal items when your checked bags are delayed or missing. Emergency room visits in foreign countries.
Sometimes, trips don’t go as planned. And, the troubles listed above aren’t all that uncommon — my husband and I have dealt with each of these issues multiple times in the last three years while traveling as digital nomads.
You can self-insure against these sorts of incidents by simply paying for expenses when they arise. But if things go downhill, you may be stuck with a massive bill. So, some travelers chose to protect themselves financially by either purchasing individual travel insurance or putting trip expenses on a travel rewards credit card that may provide protection when the card is used for travel purchases.
In this guide, I consider an important question that I’ve asked myself many times: “When should I purchase travel insurance and when can I rely on credit card travel protections?” The answer to this question is complex and personal. As such, the answer will vary from traveler to traveler as well as from trip to trip. Let’s dive in so you can make an informed decision for yourself.
What is travel insurance?
With travel insurance, you pay a modest amount and are protected for a larger amount if your trip doesn’t go as planned. There are many different types of travel insurance that you can purchase, but most publicly available policies provide two types of protection: medical protection and travel protection. However, it is possible to purchase travel insurance that only provides medical protection (such as GeoBlue) as well as travel insurance that allows you to only purchase the protections you need (such as American Express Travel Insurance’s build-your-own option).
I’ve previously compared the best travel insurance policies and providers. So, check out that guide to find the provider and policy that fits your needs best. As you’ll see, the coverage offered by each policy differs but the following types of coverage are available on at least some policies:
Trip cancellation: Reimburses your prepaid, nonrefundable expenses if you cancel your trip due to a covered reason. Offered by most policies, it’s usually based on the cost of your prepaid, nonrefundable trip. Note that most policies exclude cancellations due to pandemics or epidemics unless you have personally been diagnosed.
Trip interruption: Reimburses you for the unused, nonrefundable portion of your trip and/or for the increased transportation costs it takes for you to return home due to a covered reason. It’s offered by most policies but is usually dependent on the cost of your prepaid, nonrefundable trip. Some policies may not cover the cost to rejoin an interrupted trip.
Emergency medical: Provides benefits for losses due to covered medical and dental emergencies that occur during your trip. Offered by most policies, usually with a low cap on emergency dental care.
Travel accident protection: Coverage for an accident resulting in death or dismemberment while on your trip. Offered by most policies.
Emergency medical transportation: Emergency medical transportation arranges and pays for the cost to medically transport you to an appropriate medical facility to receive care and to get you home after you have received care. Coverage may also pay for the costs of a visitor’s economy-class, round-trip transportation to the covered person’s bedside. Offered by most policies and usually requires preapproval and arrangement by the provider.
Political evacuation: The political evacuation benefit can be used to transport you to the nearest safe place or your residence under specific conditions. Not offered by most policies, and policies that do offer this benefit often have many exclusions.
Baggage loss/damage: Covers loss, damage or theft of baggage and personal effects. Offered by most policies, usually with a low cap on high-value items such as electronics.
Baggage delay: Reimburses the purchase of essential items during your trip if your baggage is delayed or misdirected by a common carrier. Offered by most policies, but some require up to a 24-hour delay before allowing any reimbursement.
Travel delay: Reimburses you for additional expenses due to a covered delay. Some policies may also cover lost prepaid trip expenses due to a covered travel delay. Offered by most policies after a six- to 12-hour delay.
Change fee coverage: Provides reimbursement for fees to change the dates on your airline ticket. Only offered by some providers on some policies.
Loyalty program redeposit fee coverage: Coverage for frequent-flyer mile redeposit fees in the event of a covered trip cancellation. Only offered by some providers on some policies.
24-hour hotline assistance: An assistance team that’s available to help you handle all kinds of travel emergencies. Offered by most policies.
Concierge: Provides personalized information about your destination and assists you with obtaining restaurant reservations, tee times and tickets to events. Offered by some policies.
Rental car damage protection: Provides primary collision/loss damage coverage for physical damage to a rental car. Offered by most policies for a per-day, add-on fee.
Cancel/interrupt for any reason: Provides trip cancellation and interruption coverage for any reason, although some policies do have some exclusions. Offered by some policies, and can be added to some policies for an additional fee.
Cancel/interrupt for work: Provides trip cancellation and interruption coverage for covered work-related reasons. Offered by some policies, and can be added to some policies for an additional fee.
Lost ski/golf/hunting/fishing days: Reimburses you for lost ski days, golf rounds, hunting days or fishing days, as well as for equipment rental expenses if your equipment is delayed by a common carrier. Not offered by most policies.
Most travel insurance policies exclude any loss incurred because of a preexisting medical condition that existed within a certain period of the coverage effective date (usually 60 to 180 days). However, most policies will waive the preexisting condition exclusion if you meet certain requirements. These requirements usually include purchasing the policy shortly after the first nonrefundable trip payment or deposit as well as being medically able to travel when you purchase the policy.
Likewise, all travel insurance policies have exclusions. For example, most plans exclude medical benefits for injuries caused while doing adventure activities such as sky diving or skiing outside of maintained trails.
What travel protections are provided by credit cards?
Some credit cards don’t provide any notable travel protections, while others offer ample travel protections. Currently, my favorite consumer credit cards that offer travel protections are the Chase Sapphire Reserve® ($550 annual fee), the Chase Sapphire Preferred® Card ($95 annual fee) and The Platinum Card® from American Express ($550 annual fee, see rates and fees).
Some travelers may also want to consider the protections provided by the U.S. Bank Altitude Reserve Visa Infinite® Card. However, I excluded this card because the benefits aren’t clearly defined to non-cardmembers and the Chase Sapphire Reserve will generally be a better option for cardholders willing to pay a high annual fee.
If you’re looking for a small business credit card that offers travel protections, you may want to consider the Ink Business Preferred Credit Card or The Business Platinum Card® from American Express.
The information for the U.S. Bank Altitude Reserve and the Ink Business Preferred has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
When should I purchase travel insurance?
There are many different travel insurance providers and policies, so it’s difficult to compare independent travel insurance and credit card travel protections head-to-head. Instead of comparing travel insurance with credit card travel protections, in this section I consider when you should purchase travel insurance before considering when credit card protections may be enough in the next section.
Here are some reasons you may want to purchase travel insurance for a trip.
Travel protections aren’t offered
As discussed above, not all travel credit cards provide extensive travel protections when you book your travel using the card. So, if you’re using a card without travel protections or a card that only offers limited travel protections, you may want to purchase travel insurance.
You may want to cancel for epidemic-related reasons
Credit card travel protections and most independent travel insurance exclude cancellation due to pandemics or epidemics unless you have personally been diagnosed. So, if you are booking travel that you aren’t sure you’ll want to take — or even be able to take — due to epidemic-related reasons, you may want to purchase cancel for any reason insurance. Alternatively, you could consider purchasing a travel insurance policy that explicitly includes cancellation due to epidemics. Although these policies are currently rare, Wendy Perrin’s website found that Atrio Travel Assist includes epidemics as a valid reason for trip cancellation.
Some travelers aren’t covered
Just because a card offers travel protections, doesn’t mean everyone traveling with you on a trip will be covered. In particular, travel protections usually only extend to select relatives of the cardholder. So, friends, employees and relatives may not be covered.
If you are planning to partake in an activity that is generally excluded by most insurance policies, you may want to purchase a travel insurance policy that explicitly includes your activity of choice. For example, adventure sports activities such as base jumping, sky diving, free soloing, diving, mountaineering and paragliding are often excluded. You may want to consider purchasing insurance from an association involved in your adventure activity, such as Divers Alert Network (DAN) if you’re a diver or German Alpine Group (DAV) if you partake in alpine sports.
You’re concerned about preexisting conditions
Most credit card trip interruption and cancellation insurance excludes cancellations or interruptions caused by preexisting conditions. So, you’ll want to purchase travel insurance — and ensure you satisfy the insurance’s preexisting condition exclusion waiver conditions — if you want trip cancellation and interruption insurance that covers preexisting conditions.
Nonmedical evacuation insurance
If you want evacuation insurance for nonmedical reasons, you’ll want to purchase travel insurance that covers nonmedical evacuations. However, be sure to read the benefits guide closely, as even nonmedical evacuation benefits may not cover every type of evacuation you might need. For example, some policies don’t cover evacuation from an area that had a travel warning when you booked your trip or evacuation from an area that’s suddenly inaccessible due to a landslide or other environmental incident.
Ski/golf/hunting/fishing trip coverage
Some travel insurance policies cover missed ski, golf, hunting or fishing days if travel delays or other select reasons cause their cancellation. Some of the policies also cover sporting equipment rental if your equipment is delayed or lost by a common carrier. And, some policies may provide compensation for trips on which you’re unable to hunt or fish due to regulations implemented after you booked your trip.
Cancel for any reason
If you are uncertain whether you’ll be able to take your trip, but the reason for which you’d need to cancel or interrupt your trip isn’t normally covered by credit card trip interruption/cancellation protections, then you may want to purchase travel insurance that offers a cancel-for-any-reason benefit. For example, my friend once purchased this type of insurance when he bought a flight to a country for which he needed a visa but wasn’t sure his visa application would be successful. Ironically, some policies have exclusions for this benefit, so be sure that the reason for which you may need to cancel isn’t excluded.
If you simply want extra assurance that you’ll be covered for a wide variety of potential issues, then purchasing travel insurance may provide comfort that is worth the price of the policy. However, you may find that each insurance wants you to file with the other insurance first if you have multiple coverage options.
When are credit card travel protections enough?
If you don’t fall into any of the categories above and you use a credit card that provides extensive travel protections — such as the Chase Sapphire Reserve — when making travel purchases, you may determine that credit card protections are enough for some (or all) trips. However, I’d only recommend relying on credit card protections if you also have medical insurance that provides adequate coverage at your destination even if the medical providers you end up using are out of network.
Below are a collection of reasons you may be able to rely on credit card protections instead of purchasing travel insurance. All of these reasons don’t need to apply for you to forgo travel insurance, but if some or most of these reasons apply to your trip, you may choose to rely on credit card protections:
You have personal health insurance that will cover you on your trip, even if treatment is out of network
You have a premium travel rewards credit card that provides travel protections, and you use this card to book your travels
You have a premium credit card that provides medical evacuation protection on your trip
You book refundable travel, including award flights and/or nights that can be canceled free of charge
You tend to change your plans frequently or make travel plans at the last minute
You have an emergency fund that could cover unexpected expenses if needed
You have airline miles or transferrable points that you can use to leave the area or return home if needed
You avoid especially high-risk activities
Is credit card travel insurance good enough?
After researching the best travel insurance policies and providers, I did purchase travel insurance for one specific trip because I wanted political evacuation coverage. But, for the majority of my trips, credit card protections provide enough protection for me. This is because my travel usually looks like the following:
My flights are often American Airlines award flights that I can cancel and redeposit free of charge due to my American Airlines Executive Platinum status or other award flights that have modest change and cancellation fees
My lodging is almost always freely cancelable until shortly before my stay
If I book a tour or activity, it is usually within 24 hours of the tour or activity
My health insurance covers me well, so travel insurance would only cover my deductible. And, my out-of-network deductible is low enough that I’m willing and able to cover it using my emergency fund
I book flights, or put the taxes and fees for award flights, using the Chase Sapphire Reserve card. So, I already have access to the card’s travel protections, including emergency medical evacuation (which I also have as a cardholder of The Platinum Card from American Express), trip delay, baggage delay and lost baggage protection
I have ample airline miles and transferrable points that can be used to cover a last-minute one-way flight
So, as you can see, the benefits of purchasing travel insurance would be minimal for most of my trips. And, although I live on the road as a digital nomad, I visit my legal residence frequently enough to be covered by credit card protections that have a 60-day or 90-day trip-length limitation. But, depending on how you travel, you may come to a different conclusion than me regarding travel insurance for your trips.
Should you purchase travel insurance for an upcoming trip? This decision is personal, and often there isn’t one correct answer. One way to think about it is whether you’d be adequately covered without purchasing travel insurance if the worst happens. If you’re willing and able to cover the costs in this situation — or you feel confident you’d be adequately covered by the travel protections offered by your credit card and health insurance — then you can safely proceed without purchasing travel insurance. Otherwise, you should consider purchasing travel insurance shortly after you purchase the initial expenses for your trip.
For rates and fees of the Amex Platinum Card, please clickhere.
Featured photo by Samuli Vainionpää/Getty Images.
Original Source: androidcentral.com