Brokers act as intermediaries between buyers and sellers, while sellers sell products or services to buyers. Brokers usually represent the seller and require more advanced training and licensing, and can own a business. Payment for brokers is commission-based, while sellers may receive a salary or commission.
Although a broker and a seller involve some form of selling, they are not the same thing: a broker serves as a go-between, or agent, that brings buyers and sellers together. A seller sells a product, item or service to a buyer. Other differences between the two include licensing, how they are paid, and training. For some professions, such as real estate, a realtor is the person a salesperson works for.
A broker and a seller act in two different capacities. The seller works for an employer and sells a product or certain services to its customers or clients. Brokers usually represent the seller, which can be a person, company, or a group of companies, such as insurance companies. In some cases, he may represent the buyer, or less often, both the buyer and the seller. It’s your job to bring the two parties together and facilitate the sale of services or an object, like a house.
When it comes to the necessary education and training, the scope of difference between a broker and a salesperson varies. A salesperson can get a job with little more than a high school diploma and on-the-job training. This depends on the type of sales, as some may require specialized classes or training courses. A financial or real estate salesperson will need specialized training for their chosen career, and in some cases a college degree may be required when looking for employment.
Unlike a salesperson, a broker will usually have more advanced training. In terms of college education, a degree is generally not required, although most states do require some post-secondary courses. When it comes to real estate, another difference between a broker and a seller is that a broker can own a real estate business while a seller cannot. In this case, a salesperson works for the broker.
Sellers and brokers also have different roles when it comes to insurance. When a salesperson works for a single insurance agency, he can become an independent agent for the company and run his own franchise business. An insurance broker, however, sells policies for several companies and, as in real estate, a salesperson works for him.
Regardless of the type of broker, licensing is a must. The need for licensure is one of the main reasons why certain courses must be taken. A seller typically does not need a license to sell items such as general merchandise. When he is selling real estate or insurance, however, licensing becomes necessary.
The method by which a broker and seller receive their payment is also different. A salesperson may be paid a typical salaried or hourly wage, or may earn a commission for the items or services they sell. Brokers earn a commission based on the sale he arranged between the buyer and seller. He may receive a commission from the seller, the buyer, or both, depending on the deal. In the insurance and real estate industry, when a seller sells a home, the commission goes to the broker, who pays the seller.
Protect your devices with Threat Protection by NordVPN
