Home > Consumer Behavior > Is there a correlation between decision making skills and income?

Is there a correlation between decision making skills and income?

Do you think there is a correlation between decision making skills and income potential? I'm wondering if the top earners tend to have better decision making skills than the rest of us. - by Swamprat
Well from one rat to another, the answer is probably yes. You have to decide to engage in sales of legitimate product as opposed to say, stolen goods.

You have to decide to show up at work, as opposed to having coffee with the rest of the guys.

You have to decide to spend the last half an hour at night getting ready for tomorrows meetings as opposed to happy hour and promising you'll come in the morning early to get ready.

You'll have to decide to continue your learning, as opposed to winging it. Yes, I think that many people make choices that they instinctively know aren't right, but will make them anyway. Successful folks make the "right" decisions and know when to switch gears when they make the wrong ones.

Yes. In MY OPINION, choices make a difference.

Aloha... shds; ;bg - by rattus58
I was wondering more about the ability to make decisions clearly and quickly. What do you think about that idea? - by Swamprat
I was wondering more about the ability to make decisions clearly and quickly. What do you think about that idea?
I think that those that can make decisions do better than those who cannot. Clarity in a decision i think refers to one's abiltiy to process what you're deciding on. Trusting your decisions is as important as making them unless there is new information that would require a change.

I say this because I've seen people make quick decisions that would have been right if they stuck to it, but as soon as some doubt was cast, changed the decision before it had time to prove itself out.

These are my opinions, owned by me alone in concert with my other embodiments, together with mysef.

Aloha... :cool: - by rattus58
Do you think there is a correlation between decision making skills and income potential? I'm wondering if the top earners tend to have better decision making skills than the rest of us.
From the perspective that selling is one's business, not just a practice, I believe that the results of top producers in sales are influenced by good decision-making

Salespeople act in accordance with their own business choices and business decisions. It follows then that the decisions they make will determine their ultimate success or ultimate failure or ultimate mediocrity.

I want to add that, in my view, it is the EARLY decisions we make in our sales careers that will have the greatest impact overall. Sadly those instances very often come at a time when the perceived needs outweigh the guidance at hand. - by Ace Coldiron
My thinking is that if the highest earners have the better decision making skills then the lowest earners probably have poor decision making skills. I would rather sell to someone with the better decision making skills since as a salesperson that is what we are after, a decision. If my idea is correct I feel for the salespeople who are selling to those with poor decision making skills. - by Swamprat
My thinking is that if the highest earners have the better decision making skills then the lowest earners probably have poor decision making skills. I would rather sell to someone with the better decision making skills since as a salesperson that is what we are after, a decision. If my idea is correct I feel for the salespeople who are selling to those with poor decision making skills.

I'm thinking that you're identifying a natural selection thing here aren't you? Most of us I think seek the prosperous to sell to don't we? If I had to make assumptions, it would be that they tend to be decision makers who have made the right decisions.

Much Aloha,

Tom :cool: - by rattus58
Yeah I guess natural selection is a way of saying that. No I don't think most of us really seek the prosperous to sell to I mean you sell to whomever you think is a potential buyer and the problem with that is even if the prospect qualifies as having the need, money, hurt, desire and trust but they have a history of avoiding making decisions or don't know how to make decisions clearly and relatively quickly the salesperson really could be better off working with a better quality buyer, someone who can and will make a decision in a reasonable period of time. - by Swamprat
No I don't think most of us really seek the prosperous to sell to I mean you sell to whomever you think is a potential buyer and the problem with that is even if the prospect qualifies as having the need, money, hurt, desire and trust but they have a history of avoiding making decisions or don't know how to make decisions clearly and relatively quickly the salesperson really could be better off working with a better quality buyer, someone who can and will make a decision in a reasonable period of time.
While I agree with what you say about people not being able to make a decision, I'm not sure I'm following you exactly. No one like indecision. That's why we are salespeople, to persuade those who have the need to accept the risk of purchase.

Back to your other comment..
No I don't think most of us really seek the prosperous to sell to I mean you sell to whomever you think is a potential buyer
How are you qualifying your potential buyer? If you sitting down with people and they have all the qualifications you enumerated, that is need, want, desire, wherewithall, and purpose... I'm tempted to associate indecision there with the process employed to seek agreement, that is the SALESMAN, not the client.

Aloha... :cool: - by rattus58
I'm confused. I thought this thread was addressing the decision-making skills of the salesperson. When did we change the subject to the decision-making skills of the potential buyer?

By "top earners" are we talking about prospects then? Is this topic about selling to the affluent, who might have better decision-making skills? - by Ace Coldiron
That's why we are salespeople, to persuade those who have the need to accept the risk of purchase.
@ rattus
As salespeople, through skillful application of sales skills we can increase the chance of a prospect making a purchase decision but that's it - you can't make the prospect buy - if the prospect doesn't buy that doesn't always mean you dropped the ball. Sales skills will only help you so much with the prospect's personal decision process.

@ ace
Selling to the affluent, yes that is what I mean. - by Swamprat
@ rattus
As salespeople, through skillful application of sales skills we can increase the chance of a prospect making a purchase decision but that's it - you can't make the prospect buy - if the prospect doesn't buy that doesn't always mean you dropped the ball. Sales skills will only help you so much with the prospect's personal decision process.

@ ace
Selling to the affluent, yes that is what I mean.
Hi Swamprat... We're going to have to come to agreement here. True, we cannot make the prospect buy, however it is often BECAUSE we dropped the ball that the prospect doesn't buy. I can tell you this from personal experience, both in having someone else sell my prospect, and myself on occasion achieving success where someone else failed and I'm sure most others here can also share similar experience.

Aloha... :cool: - by rattus58
Do you think there is a correlation between decision making skills and income potential? I'm wondering if the top earners tend to have better decision making skills than the rest of us.
I'm sorry. I originally misunderstood the question so my original answer was not relevant.

Top earners make good decisions in buying situations involving their areas of expertise. Probably that holds true for people of low income too. Certainly areas of expertise are not limited to the affluent.

However, from vast experience in selling to the affluent, I believe they hold absolutely no advantage in decision making outside of their area of expertise.

A high earning medical doctor or other professional might very well make poor decisions on contracting for renovations to a medical center they own. I've dealt with such as well as wealthy publishers, politicos, prominent engineers and architects, all demonstrating poor decision making.

Two demographics that I found to be very astute in that area were manufacturers, and law enforcement people. I observed that many times but I can't give a satisfactory reason why.

In addition, I don't see a direct correlation between a person's decision making skills and one's ability to sell to them. An exception, of course would be in the area of willingness to make a decision. - by Ace Coldiron
@ rattus
Oh yeah, salespeople cost themselves deals all the time no doubt about it. I'm saying that a lot of prospects aren't "ready" to buy because they haven't worked out internal issues that must be worked out before a sales can happen and these are issues that a salesperson wouldn't be privy to.

@ ace
The more I think about it the more I think I would prefer to sell to prospects who are not only willing to make a decision but also capable of making clear decision in a reasonable period of time. Those are the decision making skills I am referring to not if a decision is ultimately a good choice or a poor choice. - by Swamprat
@ rattus
Oh yeah, salespeople cost themselves deals all the time no doubt about it. I'm saying that a lot of prospects aren't "ready" to buy because they haven't worked out internal issues that must be worked out before a sales can happen and these are issues that a salesperson wouldn't be privy to.
Show me how this would work. You call up someone, you ask for an appointment, you secure an appointment, you have a client that has a need, has desire, has means, and has purpose but is not ready to buy. Just where would you "discover" this not ready to buy?

If someone wasn't ready to buy, I'm wondering if they'd even be involved in the sales process at all. But if you think that someone with all of the necessary ingredients to be a qualified prospect would go through the sale while not being ready, how would you defend against that?

Aloha... :cool: - by rattus58
@ rattus
@ ace
The more I think about it the more I think I would prefer to sell to prospects who are not only willing to make a decision but also capable of making clear decision in a reasonable period of time. Those are the decision making skills I am referring to not if a decision is ultimately a good choice or a poor choice.
That certainly puts a clearer light on what you're talking about in this thread. Frankly, it seems the topic here is more about expediency in decision making than "skills".

This really goes back to some basic stuff. There are task driven buyers and process driven buyers. When you distinguish between the two, your realize that you must approach them differently--or focus on the group you feel most comfortable with. - by Ace Coldiron
@ ace
To be clear the topic is about a correlation between decision making skills - capability of making a clear decision (in a reasonable period of time) - and income. To put it bluntly, people who can't make decisions are more likely to be low income earners. - by Swamprat
@ ace
To be clear the topic is about a correlation between decision making skills - capability of making a clear decision (in a reasonable period of time) - and income. To put it bluntly, people who can't make decisions are more likely to be low income earners.
Please define low income earners.

Aloha... :cool: - by rattus58
@ ace
To be clear the topic is about a correlation between decision making skills - capability of making a clear decision (in a reasonable period of time) - and income. To put it bluntly, people who can't make decisions are more likely to be low income earners.
What started out as a question posed by you to start this thread now seems to be a statement.

Blunt--yes. Accurate? I think it's an overgeneralization and I question its accuracy for reasons based on experience which I've stated earlier. I must say you've taken a roundabout way of expressing an opinion. - by Ace Coldiron
I am asking a question. I would like to know what others think about a possible correlation between decision making skills and income. I don't know how to make it any clearer for you. Sorry. - by Swamprat
I am asking a question. I would like to know what others think about a possible correlation between decision making skills and income. I don't know how to make it any clearer for you. Sorry.
My answers were clear. But I'll clarify even further.

I don't think there is a direct correlation between decision making skills and income. I do believe however that a correlation can be found in decision making skills within a person's area of expertise and the income they derive from that area of expertise. Your opinion above I don't agree with because it is too much expressed as a generalization, and also it does not pass the test derived from my own experiences with high money earners.

One reason I am extending my comments is that your opinion is one that at first glance sounds good, but I don't think it holds water, and I invite others to think for themselves based on their own experiences. - by Ace Coldiron
I do believe however that a correlation can be found in decision making skills within a person's area of expertise and the income they derive from that area of expertise.
That works. Thanks for the clarification. - by Swamprat
I don't think there is a direct correlation between decision making skills and income. I do believe however that a correlation can be found in decision making skills within a person's area of expertise and the income they derive from that area of expertise. Your opinion above I don't agree with because it is too much expressed as a generalization, and also it does not pass the test derived from my own experiences with high money earners.
The excerpt that the member chose to quote was not by itself reflective of my complete answer to this thread's question. The above is the complete text in which I stated my viewpoint. - by Ace Coldiron
Hi Ace... :)

The other question unanswered here as well, is the definition of high versus low income earners. GM has union members that receive upwards of $75,000 a year for sitting on their butt. Depending on who you talk to, this is ABOVE median HOUSEHOLD income in AMERICA and they aren't even EARNERS.

So... I'm curious as to where income is assumed to be High and where it is assumed to be low.

Aloha.... Tom shds; ;bg - by rattus58
I am not proposing a threshold for income levels but instead a relative scale compared to others in similar positions. If you are at the bottom of the barrel chances are it's because your decision making skills are below those above you. - by Swamprat
I am not proposing a threshold for income levels but instead a relative scale compared to others in similar positions. If you are at the bottom of the barrel chances are it's because your decision making skills are below those above you.
"Top of the barrel" might include:
  • Unqualified people holding positions gained through nepotism (common)
  • Overpaid people (common)
  • CEOs about to be fired because of bad decisions on their part (More and more common)
  • People with very clever agents
  • Tenured personnel who are rarely called on to make a decision (common in many fields such as education)
  • Executives who delegate decision-making to more qualified underlings (common)
  • Wealthy owners of businesses that do not deal with day-to-day decisions because they realize their own limitations, instead relying on management staff to make the decisions
  • Those who have reached their own level of incompetence (Re: Peter Principle)
"Bottom of the barrel" (other member's label--not mine) might include:
  • Bright newcomers who earn at a starting pay scale (common)
  • Salespeople in the early stages of a career (common)
  • Salespeople assigned a floundering territory as an opportunity to realize a solid income through growing the territory (common)
  • Employees with firms that have not reached equal opportunity standards
  • Bright junior partners in law firms (common)
  • Brilliant young medical practitioners
  • People who prioritize other factors above income in career decisions
  • People who have experienced a catastrophe.
The correlation is an illusion. - by Ace Coldiron
If you didn't know what I meant you could have asked and I would have told you. - by Swamprat
I am not proposing a threshold for income levels but instead a relative scale compared to others in similar positions. If you are at the bottom of the barrel chances are it's because your decision making skills are below those above you.
When you make these assertions, at what point in ones carreer are you referring and further, since many incomes are dependant upon upon time in service, I'm assuming you're discounting those in your comments?

Aloha.. :cool: - by rattus58
We are making decision after decision all of the time. Am I happy? Am I satisfied? Do I need anything? Is this a good job for me? Should I slow down? Should I turn here? Are my shorts too tight? You get the picture I suspect. If you can't make decisions clearly and relatively quickly you are at a disadvantage. - by Swamprat
There is no such thing as not making a decision. Even if one chooses not to decide upon something, then the decision is to postpone/procrastinate making a decision. In other words one has decided not to make a decision.
At one company at which I worked my Boss said he would not make a decision on a proposal I'd submitted to him. My reply was "So you've decided to delay the decision"
If you look at successful people in all walks of life they have the capability to be decisive and then get on with it, not looking back but forward, because that's where you'll spend the rest of your life. - by Market People
There is no such thing as not making a decision. Even if one chooses not to decide upon something, then the decision is to postpone/procrastinate making a decision. In other words one has decided not to make a decision.
At one company at which I worked my Boss said he would not make a decision on a proposal I'd submitted to him. My reply was "So you've decided to delay the decision"
If you look at successful people in all walks of life they have the capability to be decisive and then get on with it, not looking back but forward, because that's where you'll spend the rest of your life.
Explain how you are differentiating "being decisive" and making a decision.

Aren't we talking about decision making SKILLS as the topic states? Would that not imply that there are good decisions and poor decisions? One can be very decisive with a poor decision. - by Ace Coldiron
I wasn’t necessarily making a big differentiation other than one is the noun (decision) and the other (decisive) being the adjective and therefore fitted in the context of the appropriate sentence. However, when I now think about it (and thanks for questioning the context) I see “decision” as reaching a verdict/making up one’s mind whereas “decisive” is being resolute/making decisions quickly.

You are absolutely right, we don’t always make the right decisions and the law of averages would suggest that in making decisions, some of them will be wrong. Is there a correlation between decision making skills and income? Yes. However, the corollary to this is that decisions made are acted upon - by Market People
Is there a correlation between decision making skills and income? Yes. However, the corollary to this is that decisions made are acted upon
Yes. I invented a word years ago--"pseudodecisions" to describe those all too common decisions that are not acted upon. - by Ace Coldiron
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