Now why is it that two words with similar meanings have two very different reactions?
First, the dictionary definitions:
commission – n. – A fee or percentage allowed to a sales representative or an agent for services rendered.
profit – n. – The return received on a business undertaking after all operating expenses have been met.
In both cases, someone is receiving monetary compensation for goods or services rendered. However, many people think of commission in a positive way, whereas profit is a dirty word.
Why is that? Could it be the Negative Nellie media have brainwashed people into thinking businesses making a profit are BADDDDDD?
What purpose does that serve? Those same businesses hire people and provide goods and services. How can the business owners do that without making profit for themselves?
Should they provide the goods and services for nothing? Then it’s charity not a business. Who funds charities? People who make money fund charities. But if people can’t make money with their businesses then there can’t be charity.
What an odd concept. Businesses are horrible if they make money, yet people want businesses to hire them, pay them and allow them to buy goods and services from other businesses.
Without profits, this whole scenario becomes a conundrum.
What generated this discussion?
Well, a coin dealer advised that when someone asks why he’s not paying full melt value for gold, he explains the difference is commission. He used to try to explain the difference was profit, but he learned that people became angry with the word “profit.” Now, when he says the difference is commission, people nod their heads knowingly.
It’s a strange, strange world…