Posted by closergrl on 11/5/13 12:01pm
Msg #491386

Perfect example of thinking like an employee

I did a signing the other day for a person who is also a signing agent. She told me that she has a signing later that day, and is making $100. She also let me know that this signing is about 100 miles away, the package is about 200 pages and there are faxbacks. I was absolutely speechless. I asked her why she would do it for so little? Her reasoning is that she only does this part time for a little extra money each month and she thought that $100 for the assignment was great. How is she even making money at that price, it has to be costing her! I wanted to tell her that I just got paid $125 to do her closing, which was 12 miles from my house, under 100 pages, and no faxbacks. I also wanted to tell her that I won't have done the closing she is doing for under $300.

Reply by Teresa/FL on 11/5/13 12:03pm
Msg #491387

Some people just don't get it and never will n/m

Reply by CarolF/NC on 11/5/13 12:08pm
Msg #491388

Funny, I did one the other night for an SA that charges $50

hers took 2 hours and had many issues. She hadn't stopped to add up her expenses or so on. After we talked for awhile she said, oh my, I'm not charging enough am I?

Reply by Jack/AL on 11/5/13 12:36pm
Msg #491397

Re: Funny, I did one the other night for an SA that charges $50

And the SAs in those examples will stay part-time, until they go broke or stop when they realize the hours and expenses they've invested for a very few dollars. Even worse, if they get audited by the IRS, it just might be that their work gets determined (by the IRS) to be a HOBBY because it brings in so little revenue in return for their investment of resources. As I understand the HOBBY classification, that would mean that they would not be allowed tax deductions for their expenses. Example (just in case they read this), for a $100 signing with expenses of $60 for gas, paper, toner, etc., they'd pay tax on the $40 difference. For a hobby, they'd pay tax on the entire $100, leaving perhaps $20 or so for all of their time and trouble. I don't believe that I've exaggerated, but I've used a very roughly guesstimated example. I'm not a tax person, attorney, or know it all. I seriously doubt that many of us would spend a half day working for $20 or so, or that they would if they really understood what they were doing. Jeepers, think about how they'll feel, and how much they'll lose, if they make a mistake or overlook a document, and have to make a return trip, at their expense!

Reply by ikando on 11/5/13 1:27pm
Msg #491408

Re: Funny, I did one the other night for an SA that charges $50

$100 to travel 200 miles (both ways) is only 50 cents a mile. The IRS business deduction is more than that for car expenses only. Nothing to pay for paper, toner, etc., much less any salary for time.

Reply by SharonMN on 11/6/13 11:30am
Msg #491572

Re: Funny, I did one the other night for an SA that charges $50

While I agree that SAs must set their fees to cover expenses and allow for a decent profit, it is up to each person to decide what their time is worth. Many people work hard for minimum wage because that is the only employment they can find. In that case, $20 for half a day's work would be in line with their usual wages. Of course, professional services should fetch more.

>>>I seriously doubt that many of us would spend a half day working for $20 or so, or that they would if they really understood what they were doing.