Is Earning a Living Based On Commissions Similar to Earning a Living on Social Media?

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seoulsearch

OutWrite Trouble
May 23, 2009
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Hey Everyone,

Ever since we talked about our opinions of people making money on social media (the pro's and con's, the rights and wrongs, the in's and out's, etc.,) I've been thinking about other careers that are primarily based on people paying tips or commissions. For example, restaurants, hair, nail, and beauty salons, housekeepers, and a myriad of other service-based careers. I have also been thinking a lot about small businesses that are struggling to stay afloat in today's economy.

A neighbor and I were talking about how we would love to support small businesses and the local farmer's market in the summer, but it's hard to justify paying $15 for a travel-sized bottle of lotion, even if it IS handmade.

I was thinking of how many careers in these kinds of fields might be similar in nature to YouTube -- people choose whether or not your service provides value to their lives, then choose whether or not they want to pay the prices, and then after that, determine how much (if anything) they want to tip the person who served them (waiter, hairdresser, person who carried their luggage, cleaned their house, etc.)

For anyone outside of the USA, we have what's called a "tipping culture" -- many jobs that pay workers sub-par wages, then they are expected to make up for it by receiving tips -- leaving them to the grace of what other people are willing to pay. There are often "suggested" beginning percentages, such as 18% of the bill for a waitress, but people are often allowed to tip whatever they choose.

However, some places now charge mandatory tips or add them to bills above a certain amount or parties of a certain number of people or above (for example, a restaurant that automatically adds 18% to the bill for a party of 8 or more.) Some restaurants are also adding fees to those who order takeout and pick up their own food, because they say they have to make up for the tips their wait staff misses out on when people skip dining in. Starbucks and countless other quick-service, pick-it-up-yourself places now have screen prompts wanting you to "add a tip" when you go to pay, trying to normalize tipping in virtually every situation.

I do worry about people who make a living in such fields, because for someone like me, single and trying to save whatever she can, service-oriented businesses are often my lowest priority.

I can count on one hand the number of times I've eat out in 6 months. I've gotten it down to where I only get my hair cut twice a year (and I know some people go much longer than that, but for myself, it's something I feel I need, so I budget it in.) If it's within my realm of ability, I do whatever I can or need by myself so I don't have to pay for anyone else to do it.

What else can we do to survive in these times, when living costs are rising several times faster than wages?

Yet, I do worry about the people who not only depend on service-oriented businesses to support their families. I often wonder what God has for them when He Himself gave them the personalities and skill to handle that level of customer service (which, most of us know, is a lot harder than it sounds.)

I pray about it because if I can't support their businesses, and the next 1,000 people can't either, who is going to make sure that they get paid, because the Bible says, "The worker is worthy of his wages." (1 Timothy 5:18)

Now, I know we shouldn't worry. I know God leads people to other jobs and provisions. But the people I feel saddest for are the ones who seem specially designed by God for such work and really love it (and you can tell,) but the state of the world is driving them out of areas where they can use their best God-given gifts.

In the previous thread about YouTube creators earning money from their content, one of the pro's many seemed to agree with was that we, as consumers, get to decide whether or not their content is worthy, and whether or not, and how much, we are willing to pay for it.

How is this same philosophy going for other areas of business that also depend on customers deciding their worthiness, and how much someone else gets paid?

I'm interested in hearing about people's situations:

* How is business at your place of employment (or that of your spouse, etc.?) Has businesses picked up or gotten slower? Are their worries of layoffs or cutting hours, etc.? If you're working more, is it because of increased business -- or because they fired 10 people and now expect you to replace all of them?

* Do you work in a field where you depend on tips to feed your family? Have you noticed changes in how much people are willing to tip? What happens when too many people tip you too little for too long? (Have you had to look for another job?)

* If you work in an optional, tip-reliant field (meaning, it's not a necessity, but optional for most people,) have you seen a slow down in business, and does it concern you?

* How do you feel about people getting to decide if your business is worth going to, and how much they should pay you? Of course, I realize this goes for every business. But I'm thinking of say, a grocery store, which is a necessity, vs. a beauty salon, which gets cut out when money is too tight. And I'm certainly not saying we should tip for bad service. Rather, I'm thinking about the gifted, passionate people who love service-oriented jobs -- but can't make a decent living doing so.

I realize these principles apply to ALL businesses in some way. But in the YouTube thread, people seemed to appreciate that they could decide if something was worth the money, and how much they would pay, if anything.

So what happens with the shoe is on the other foot?

What do people have to say when they are on the other side of the coin -- and when others are now deciding whether their work is worth it, and how much they should get paid for it?
 
Like anything else, you got to do what you got to do. If you can't make a living at what you love, you have to make it a hobby and to do something else for a livelihood. And if it's not worth the price, don't pay it.

With your comment about grocery stores being essential, these days that is becoming less and less viable. Online options have been expanding greatly recently, even for fresh produce. (Is Walmart still a thing? I wouldn't know...)
 
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Like anything else, you got to do what you got to do. If you can't make a living at what you love, you have to make it a hobby and to do something else for a livelihood. And if it's not worth the price, don't pay it.

With your comment about grocery stores being essential, these days that is becoming less and less viable. Online options have been expanding greatly recently, even for fresh produce. (Is Walmart still a thing? I wouldn't know...)


I've listened to a few videos talking about how car dealerships can't move their inventory, especially right now, when last year's models are old news and the company wants them to stock all the 2026 models.

Someone in my family used to know someone who worked at a car dealership and my family member said, "I can't imagine the stress of knowing that if I don't sell a car, my family isn't going to be fed or have a place to live." No wonder a lot of sales people have to be pushy.

I have another family member who worked in grocery and always said they were grateful for that, "because no matter what happens, people need to eat."

I've seen the robots going up and down the aisles of Walmart (I would assume they're ordering/taking inventory,) and I do wonder how many jobs those machines have taken.

But as far as grocery stores go, I don't think they're going anywhere soon. Even if everyone ordered online, they'd still need a place to store all the groceries -- so if nothing else, I'm guessing grocery stores would be converted into warehouses. Supposedly, there is also a growing trend with younger generations preferring to go into physical stores to shop for items themselves -- but I don't know if it will be enough to save many dying retail locations.

And for as much as computers and robots are taking over, humans might still be needed to more of an extent than thought -- just to try to keep other humans in line.

Self-check-out lanes were supposed to replace cashiers -- but they've actually had to add more human clerks than anticipated in these spaces -- because of so many people stealing.
 
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It is great to get my groceries and other things delivered. For many years about the only thing we got was pizza delivery and if we used it, we usually gave the delivery person $10. Now we can get just about anything delivered, and it's a blessing because we aren't able to walk around stores anymore. It's amazing just how much our grocery bill has decreased (a lot more than we tip the delivery person).
 
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I work in IT, so the only time I hear from anyone is when something's wrong. I'm salary, so I get paid the same regardless of the number of hours I work.
My wife is a teacher and gets from from kids, parents, and some in administration. The pay is obscenely low for what she has to do. Fortunately she is paid by the hour and they don't want to pay overtime, so she never has to.
For the lowest paying job and where everyone hates you, try sports officiating...
 
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It is great to get my groceries and other things delivered. For many years about the only thing we got was pizza delivery and if we used it, we usually gave the delivery person $10. Now we can get just about anything delivered, and it's a blessing because we aren't able to walk around stores anymore. It's amazing just how much our grocery bill has decreased (a lot more than we tip the delivery person).
We get our groceries delivered by store employees not an app, and they are not allowed to accept tips.
 
I avoid places that require tips. It's a hidden cost. What's the point of the store collecting tips. Why don't they just pay the employee the minimum wage instead. It's going to cost the customer the same thing.
 
People often compliment me on my "curly" hair, but it's actually fake -- my hair is naturally stick straight and looks like Cousin Itt from The Munsters if I let it go.

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I discovered early on in life that my hair looks (and behaves) much better when its curly. But that comes at a cost, and I work a routine hair perming into my budget every year (instead of going out to eat.)

These days, it's hard to find anyone who can even do perms. Because they've been out of favor for years, I've been told by most hairdressers that it's not even taught at most beauty colleges, and most modern salons don't even offer them.

I found a local woman who does them, and she did a satisfactory job. But then I found a young girl at my Mom's salon who does a fantastic job, but costs twice the price (and it shows in her work.) The first time I booked with her, she reserved half a day with me because she said she wanted to make sure she got it right.

Because I grew up with and am surrounded by friends and family who are business owners (I'm just a worker -- I have NEVER been interested in running a business because I see the people around me working themselves to death,) so I'm always thinking of what my presence costs someone in terms of time, money, and energy.

This girl spent 4 hours on my hair, and it turned out (in the words of our @CarriePie,) smashingly. When it came time to tip her, I was calculating in my head how many haircuts she could have done in 4 hours and what it was costing her to have me, just one client, in her chair for all that time.

I mean, imagine being a waitress and waiting on one client at one table for 4 hours -- how much money would you make compared to if you had 4 other parties in that time?

And so I always try to give her a tip that I think, along with the price of the perm, will hopefully come close to making up for the lost income potential she's given to me rather than a multitude of other clients.

Her work is worth it, and the passage I keep repeating ("The worker is worth her wages,") is always in the back of my mind. When it comes to service jobs (and I'm the one who is the customer,) I always have to ask myself, "Am I willing to save enough to pay them their due wage?"

So yes the perm costs a fortune ($250 plus $80 tip,) but it makes my hair easy and manageable every single day for 16 months (well over a year,) and sometimes longer -- and to me, it's worth every penny's worth of time and frustration that it saves me in the morning. I'm willing to save for this convenience rather than eating out.

I also feel that God led me to this particular girl, and wants me to keep going to her. She told me that as she grows her skills, she is attracting a wealthy client base that is often entitled and demanding beyond what she can handle (of course, clients of all ranges are like this, but this group is particularly stressful for her.)

She told me she was thinking about keeping her services within a range of more middle-range of clients, because they treat her a lot better.

And she told me that she loves having me as a client, and will do whatever she can to work around what I need whenever I book with her.

Some things, like building relationships, are worth so much more than money -- even if it was money that got you through the door.
 
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I avoid places that require tips. It's a hidden cost. What's the point of the store collecting tips. Why don't they just pay the employee the minimum wage instead. It's going to cost the customer the same thing.
Lots of people want the tips. They make much more than they would with a minimum wage.
 
Lots of people want the tips. They make much more than they would with a minimum wage.

They do get more than minimum wage job by collecting tips. A problem with me paying the tips is how much more it cost for the order. Like walmart, I have to pay a $9.99 deliver fee, + the driver tip. A $35.00 order becomes $50.00. Almost 30% increase in pricing. They don't get my business by delivery as a result, I can only afford online order with walmart when picking up.

yeah they are making more money from the tips this way, but I don't. I don't get tips. I have disablility, and when I was working I still didn't get tips. These tips have the table tilted.
 
They do get more than minimum wage job by collecting tips. A problem with me paying the tips is how much more it cost for the order. Like walmart, I have to pay a $9.99 deliver fee, + the driver tip. A $35.00 order becomes $50.00. Almost 30% increase in pricing. They don't get my business by delivery as a result, I can only afford online order with walmart when picking up.

yeah they are making more money from the tips this way, but I don't. I don't get tips. I have disablility, and when I was working I still didn't get tips. These tips have the table tilted.
I have Walmart+ so I don't pay a delivery fee. The monthly charge for Walmart+ is credited back on AMEX. The tip more than covers the hassle of going to the store.
 
I have Walmart+ so I don't pay a delivery fee. The monthly charge for Walmart+ is credited back on AMEX. The tip more than covers the hassle of going to the store.

How much is walmart+ anyways? I think it was something like $25.00? I would much better do delivery rather than pickup, to save my car. Even if I did pay a tip. But the delivery fee!

EDIT! so I asked you this, then looked it up. I found out I can get walmart+ assist. I can get that for less than $7.00 a month. $49.00 a year. I might sign up for it.
 
But yeah even paying full price for walmart+ is worth the pickup gasoline. The tip is not that much, really I think it's 10%? The tip is worth it because I am saving my car, making it last longer.
 
How much is walmart+ anyways? I think it was something like $25.00? I would much better do delivery rather than pickup, to save my car. Even if I did pay a tip. But the delivery fee!

EDIT! so I asked you this, then looked it up. I found out I can get walmart+ assist. I can get that for less than $7.00 a month. $49.00 a year. I might sign up for it.
It's $13.99/mo or $139.90 annually (saves two months). That also includes Paramount+
 
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Ever since we talked about our opinions of people making money on social media (the pro's and con's, the rights and wrongs, the in's and out's, etc.,) I've been thinking about other careers that are primarily based on people paying tips or commissions. For example, restaurants, hair, nail, and beauty salons, housekeepers, and a myriad of other service-based careers. I have also been thinking a lot about small businesses that are struggling to stay afloat in today's economy.

If it was me, I would choose a career that would still be working when everything goes down the tube. That's why I didnt get sworn in as an officer. I had all their training and graduated 3rd overall. But I discovered that I could fix stuff so I went and was a plumber and drain cleaning. I was allowed to unclog drain lines and so I got used to fixing the adjoining piping and disposers and stuff then it turned into plumbing & Heating. After that Heating & A/C. I got laid off one January as usual and said heck with it I'll go down and take the contractors test. I didnt think I'd pass, but I wanted to know how close was I?! And as it turned out...I smoked that test! I got a 93 so I was Licensed Mechanical Contractor. That is a good trade and when times are good, sell lots of new equipment. Slow times, they want to fix what they have. and during snow storms and all that I was always allowed to drive around because I was emergency personnel first responder fix that furnace for that frail old lady She needs heat! Christmastime was always nice I got fed a lot, tips, and got to play hero. I've had wives stand there and get mad at their husband because he couldnt fix the furnace and it was easy.

So I think to choose a service industry like you said. But from your choices...Make it a home based business. Didnt you say something about the Farmers Market? That's a good idea. They say we have a famine coming so in scripture there was a few good years first and then the famine came to Egypt. So we should stock up in prep for the lean years coming.

But Jesus told me dont hoard it because the food will rot. So instead share with my neighbors. That's a good idea! Hey! Fig trees will grow where I am in grow zone 6 ohio. And fig trees produce fruit sooner than any other tree like, before 18 months, and a lot of fruit if it;s Chicago Hardy Fig Tree. I'm planning to buy one or two of them.

I never ate a fig before, I dont even know if I like them lol.

Even a Bad Business is better than a good job.

You have a good idea(s)!
 
I've listened to a few videos talking about how car dealerships can't move their inventory, especially right now, when last year's models are old news and the company wants them to stock all the 2026 models.

Someone in my family used to know someone who worked at a car dealership and my family member said, "I can't imagine the stress of knowing that if I don't sell a car, my family isn't going to be fed or have a place to live." No wonder a lot of sales people have to be pushy.

I have another family member who worked in grocery and always said they were grateful for that, "because no matter what happens, people need to eat."

I've seen the robots going up and down the aisles of Walmart (I would assume they're ordering/taking inventory,) and I do wonder how many jobs those machines have taken.

But as far as grocery stores go, I don't think they're going anywhere soon. Even if everyone ordered online, they'd still need a place to store all the groceries -- so if nothing else, I'm guessing grocery stores would be converted into warehouses. Supposedly, there is also a growing trend with younger generations preferring to go into physical stores to shop for items themselves -- but I don't know if it will be enough to save many dying retail locations.

And for as much as computers and robots are taking over, humans might still be needed to more of an extent than thought -- just to try to keep other humans in line.

Self-check-out lanes were supposed to replace cashiers -- but they've actually had to add more human clerks than anticipated in these spaces -- because of so many people stealing.
Reminds me of all those telegraph operators when telephones came along. They had to learn a special code and get good at sending and transcribing it. Then this other newfangled contraption that CARRIES YOUR VOICE comes along, and suddenly everything they know is useless.

But the telegraph put the Pony Express out of business too...

I wonder if there were any newspaper articles about all those poor telegraph clerks now out of a job. Now the newspapers are out of a job.

But would you really WANT to deliver your forum post to the telegraph clerk and have him send it to everybody else on the forum?
 
How is business at your place of employment (or that of your spouse, etc.?) Has businesses picked up or gotten slower? Are their worries of layoffs or cutting hours, etc.? If you're working more, is it because of increased business -- or because they fired 10 people and now expect you to replace all of them?

When I was just starting out in the workforce I cooked in restaurants. Back then up to 10% was the typical tip if service was excellent. Waitresses typically would end up with 2-3 times in tips what I made in a shift as a cook. They'd give a little bit of that to the dishwashers who would also help clear their tables.

The current demand for tips has gotten so crazy that I finally figured enough was enough. Now I rarely eat at sit down restaurants because if you don't tip at least 20% your screwing the server, whether or not they provided anything beyond mediocre service. For all the other businesses that put out the tip jars, I just completely ignore those now. At places where you order at a counter and then pick up your own food, but when you're paying you're asked for a tip, 100% of the time I tip $0. Whatever would I be tipping for? Yes, the whole tipping thing has gone from rewarding a waitress or barber for good service to a mandate. I'm out.

On the rare occasions that I dine at a sit down restaurant I tip well because I know it is expected. Otherwise I wouldn't go to those places at all. I also frown on places that distribute from tips that are pooled. If I tip, I want it to go to the person who served me... that's what I'm tipping for.
 
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