When selling products on commission, your time is your most valuable resource. The amount of money you earn depends not only on the commission percentage but also on the value of the items you sell and the time it takes to sell them. In this blog post, we'll compare the earnings potential of selling a high-value item versus a low-value item when both require the same amount of time to sell. This comparison will help you understand the impact of your time on your overall earnings and guide you in making informed decisions about which products to focus on.

In a commission-based sales role, you earn a percentage of the sales price for each product you sell. For example, if you sell a product for $100 and your commission rate is 50%, you earn $50. If you sell a product for $10 with the same 50% commission rate, you earn $5. The difference in earnings between these two scenarios becomes significant when you consider the time it takes to make each sale.

Let's assume that it takes you 20 minutes to sell either a $100 item or a $10 item. This time includes all activities related to the sale, such as explaining the product, answering questions, and finalizing the transaction. If you earn 50% commission on each sale, your earnings per sale would be:

Now, let's calculate your earnings per hour based on these figures. Since it takes 20 minutes to make each sale, you can complete three sales in one hour.

This simple comparison shows that selling higher-priced items significantly increases your hourly earnings.

When you work in commission-based sales, your time directly translates into money. The more efficiently you use your time, the more money you can earn. In our example, selling the $100 item generates $150 per hour, while selling the $10 item generates only $15 per hour. This difference highlights the importance of focusing on high-value items to maximize your earnings.

High-value items not only offer higher commissions but also increase the overall efficiency of your sales efforts. Selling a $100 item for a $50 commission means you earn more in less time, allowing you to reach your income goals faster. In contrast, selling lower-priced items requires you to make more sales to achieve the same earnings, which can be time-consuming and less efficient.

For example, if your goal is to earn $150 in a day, you could achieve this by selling just three $100 items in one hour. However, to earn the same amount selling $10 items, you would need to make 30 sales, which would take 10 hours if each sale takes 20 minutes. This significant difference in time and effort demonstrates the value of focusing on higher-priced items.

To maximize your earnings potential in commission-based sales, it's important to consider both the value of the products you sell and the time it takes to sell them. Selling high-value items allows you to earn more money in less time, freeing up time for other activities or additional sales.

Additionally, focusing on high-value items can lead to other benefits, such as higher customer satisfaction and repeat business. Customers who invest in high-value products often appreciate the quality and are more likely to return for future purchases. This can create a positive feedback loop, where your initial sales efforts lead to long-term customer relationships and increased earnings.

Focusing on high-value items not only increases your immediate earnings but also contributes to long-term success in your sales career. Selling higher-priced products often requires developing strong relationships with customers, providing excellent service, and building trust. These relationships can lead to repeat business, referrals, and a solid reputation in your industry.

Moreover, selling high-value items can enhance your skills and experience as a salesperson. By mastering the art of selling more expensive products, you can position yourself as an expert in your field and attract more lucrative opportunities in the future. This long-term growth potential makes focusing on high-value items a smart investment in your career.

In commission-based sales, your time is your most valuable asset. The choice between selling high-value or low-value items can have a significant impact on your earnings and overall success. As demonstrated in our example, selling higher-priced items allows you to earn more money in less time, making it a more efficient and profitable strategy.

By focusing on high-value items, you can maximize your earnings potential, build strong customer relationships, and achieve long-term success in your sales career. Remember, time is money, and making strategic choices about how you spend your time can lead to greater financial rewards and a more fulfilling career.

So, the next time you're deciding which products to sell, consider the value of your time and the potential earnings from each sale. By prioritizing high-value items, you can make the most of your time, increase your earnings, and achieve your financial goals faster.