Should I take a Commission Only Job?
filed in General, SurfYourName on Mar.25, 2009
There are some crucial things to think about when contemplating a commission only job and if this type of job is right for you. I have personal experience in obtaining and holding down a commission only position and as a business owner…I have a TRUE commission only job! Some commission only jobs are truly great positions; so don’t be scared off at the words “Commission Only”. Most if not all commission only jobs are in the sales arena and this is where I am going to focus this blog entry.
Commission only jobs are the best paying job out there and they also can be the worst paying job, sometimes at the same time! You must first separate the facts before taking a commission only job. How long has the company been in business? Are there currently salespeople making money? What is the product you will be selling? What is the total ticket price per sale and how many sales could you make in a month? Does the company have promotion and growth possibilities?
I would not advise someone with limited or no sales experience to take a commission only job. Your financial security relies on you closing deals and if you are not a seasoned salesperson, this is not the place to learn unless you have an emergency fund saved up to allow time to learn the ropes. Regardless of what the potential employer tells you, do not assume you are going to go out and make sales and commissions on your first day. There has never been a product or service that truly “Sells itself!”
If you have asked yourself the above questions and are satisfied with the answers, you may well be on your way to your first commission only job. The next questions to be asked are not about the prospective employer, but about YOU!
Every commission only job has its unique challenges, but I have never been involved in a position where I was not given the necessary tools and opportunities to succeed. The management and owners of the company want you to succeed and make money. The more money you make, the more the employer makes. Most companies that offer commission only positions will hold weekly or monthly sales meetings where they will go over products, services, sales pitches, and closing techniques. These are activities you will not be getting paid for directly. However, these activities will help you gain knowledge and skills to help you close more deals and make more money.
Take the amount of money you will make in this commission only job and then add up all the hours of cold calling, meeting with clients, closing deals, training sessions, and other job related tasks. Then divide that by the amount of hours you would need to work per week to earn that money. If it doesn’t add up, then the position may not be a good fit for you!
Most sales positions require someone who can work on their own with little supervision. They pound the pavement and work the phones all day long to make a sale. If you are not a motivated person who can deal with these types of conditions, you may want to think long and hard about a commission only job. However, if you are someone that likes to get paid based on the amount of work and skill needed for a commission only job, then go for it and make some money! Rejection must not distract salespeople. You must be willing to have the door slammed in your face all day long, then get up the next day and do it all over again. Sales are strictly a numbers game, the more contacts you make, the more closed deals you will have building your paycheck.
If you are willing to take the plunge into a commission only job and you are willing to do the work; a commission only position will most likely be the last pay method you will ever choose!
If you are a talented salesperson that is ready or have been performing in a commission only environment, email me your resume. SurfYourName.com is always looking for great salespeople that are ready to take their career and paycheck to the next level!
Erik Bledsoe, CEO
SurfYourName.com
Erik@SurfYourName.com
March 25th, 2009 on 4:51 pm
commission only jobs are good if you try it when you are in your early twenties,if you are not makeing 25 to 40 thousand within 2 years look for something else.
March 27th, 2009 on 6:04 am
Thanks for your comment; I personally do not think there is an age restriction on a commission only job. It depends on your experience and skills. If you are a solid salesperson, a commission only position will allow a steady and larger income than a salary or hourly job. I do agree with you about setting a time limit to get the annual range you are wanting and needing.
You must set a goal and work your way to that goal. Commission only positions can generate a good income within the first few months. It depends on how long it takes you to get your client base built up and a good sales pitch. If the employer has a good training program and has solid leads for you to work you can be making money on your first day. Once again, thanks for the comment and keep them coming!
Erik Bledsoe, CEO
SurfYourName.com
February 26th, 2010 on 7:09 pm
Great article. I never thought about it that way. Thanks.
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April 17th, 2010 on 8:10 am
Edward,
Thanks for leaving comments. Please email if you have any questions I can help with!
Erik Bledsoe
June 12th, 2010 on 6:59 am
Great post!
July 19th, 2010 on 9:30 pm
Thanks a million for this, I appreciate the info
March 23rd, 2011 on 5:03 am
What’s a fair % commission if the employer provided no lead and limited training? This is a new product that he wants to launch in North America. Any feedback on that?
April 16th, 2011 on 9:37 am
LS,
You posed a great question. There are several variables that would need to be known before an exact answer would be possible. It depends on the ticket price of the item you are selling. How much demand is there for this product or service you would be selling? With little or no training and no leads provided the commission rate would need to big. You must do the math and see if the time and effort involved would be worth the possible payout. If you have more details to share, we may be able to provide a better foundation for a response! We look forward to hearing back from you soon!
Erik Bledsoe, CEO
SurfYourName.com
Erik@SurfYourName.com
July 8th, 2011 on 11:10 am
Thanks for this article! It was very informative and helpful. I’m considering taking a commission only position with the Better Business Bureau (BBB) at 50% commsion. I have 7 years of a variety of sales experience and have performed consistantly above average in all my ventures. I also have a degree in Advertising and a minor in Marketing. I have never taken a commission only job before but this is tempting because it is with a nationally known and established company that people generally think highly of and the commission percentage is very good. I’m nervous about it though because I would be coming off of an unemployment check that we absolutely need to meet our monthly expenses. I can’t afford to not make enough money. Are you familiar with a sales position with the BBB? I’d like to know your opinion. Do you think this is a good opportunity?
August 10th, 2011 on 2:38 pm
I am recent graduate and I am looking to get into some field of sales. Right now I have an interview lined up with a global polymer manufacturing company that has been around since the 1950s. It seems to be a well established company having distributions in over 120 countries. It is an independent rep job who’s income is commission only and offers full benefits. I would be selling to the industries involved in things such as pulp and paper, power companys (nuclear, hydro, etc), marine, HVAC, Mining, General Equipment,and so on which are all very abundant around my area. Should I consider taking the position if it is offered to me?? Or is this too much to get into fresh out of the gates? I have had over 9 years of work experience involved in inside sells at a swimming pool company. I just don’t want to get myself in a bind down the road. I do have a wife who has a salary paying job and full benefits already so this would be some form of back up in case things do go south. Do you have any helpful advice??
September 2nd, 2011 on 9:35 am
I am thinking about accepting a commission only job for a Retail Energy Provider. Research shows this provider has been in business since deregulation 2002. It’s the second largest in the state. Sales 2nd quarter 2010 $208M, 2nd quarter 2011 $618M. Fitch Rating B+ and stable. I will not be selling anything you do not have already. I will just be saving you money to switch from one provider to another. I am very excited for the opportunity, but my wife is scared. She is “salary slave” driven. Siuggestions? Comments?
September 5th, 2011 on 10:21 pm
Eric,
I agree these types of jobs require a certain type of person who is highly driven and determined to hit their targets. That said I also have worked in commission only positions. The problem is whilst I was a good performer usually exceeding my targets I still wasnt happy with me taking on all the risk and company only in a win win situation. I moved to another company paying me a generous base plus comparable commission. The fact is good salespeople can always find a job with good base plus good commission or a lower base plus excellent commission. I dont see the point of commission only jobs unless you have no other option. The only commission only job I will consider next will be my own business. The exception would be if I worked for someone and recieved the 60/70% of the profit since I’m doing all the work and taking the risk. Not the company.
November 12th, 2011 on 10:42 am
Kara,
I am not familiar with the details on what the BBB offers as a compensation package. There are many questions I can ask even without knowing the compensation plan. First, what is the turnover with their sales team? High turnover in commission only positions would be a huge red flag for me. Talking with people on their current sales team could also shed some light on the job opportunity.
Second, you would need to take the commission plan and do some math. What is the average sale price? What is the average closing ratio? Are you cold calling or are there company provided leads?
Third….Fourth….and the list goes on and on. Make sure you do your homework before jumping into a commission only position. Even though I have taken several commission only positions and am confident in my abilities, I still do research and talk with friends and family. It always helps to get another point of view.
Let me know what you decided. Did you take the position or pass?
Erik Bledsoe, CEO
SurfYourName.com
Erik@SurfYourName.com
January 7th, 2012 on 10:28 pm
I recently was offered a commission only sales/marketing/PR position. I have had them in the past when the money was only in addition to another income and was able to close deals within a couple of days of coaching. they tell me that they will train me for 1-4 weeks and then send me out on my own. The products are basically little coupon books for 90% off of services that we sell basically door-to-door (it’s actually us wandering through strip malls and such talking to people) for $30-40 and we net a profit of $7-14 on. The company is an arm of a much larger company that has been in business since the 50s and started as a door to door toy sales job. My (non marketing/sales) friends say this is a pyramid scheme. I’m conflicted. Obviously they’re in sales and PR so there is NOTHING negative about them on the web, and almost all of the stuff on the web is written by them. I didn’t get to ask about turnover, but I noticed that not one of the managers I spoke to (including the head of the office) were there longer than 2 years, and ALL of them did this pavement pounding for 6 months (roughly). I was told that this was because the office is relatively new (since 2007) and that people are promoted that the older staff simply works from home. They TELL me there is unlimited growth, including the ability to relocate anywhere, and that within 4-6 months I can expect to go from commission only onto a salary with benefits. Does this smell like a scam to you? Or is this your run of the mill sales and PR job?
April 13th, 2012 on 12:57 pm
I am thinking about taking a sales position with furniture row. I have little sales experience and was wondering if u had any advise
April 14th, 2012 on 8:39 am
Andy,
Thanks for the question! It is a big jump taking a commission only job for someone who has never worked in a commission only environment before. Someone with little sales experience can have difficulties getting their sales skills to a level that support themselves. Being a good sales person takes more than a great personality. Knowing the ins and outs of the sales process is very important. There are many good books on the sales process and how to sell effectively and I recommend you doing some homework.
Does the furniture company offer any training or do they throw you onto the sales floor on your first day? What is the commission structure? What is the average sale price? There are many things like these questions that would be a role in my decision on taking a commission only job.
Based off the little information you have given in your comment, I cannot give much advice on taking or not taking a commission only job. If you want to give a little more information, maybe we can come up with more advice.
Some of the Account Executives that work for SurfYourName.com are paid on a commission only structure and are very successful. However, I have worked with several people in the past that we just not cut out for that type of job. Taking commission only jobs is a very popular topic on our blog and I am sure other readers will have comments and advice for you as well by leaving comments below.
Regardless, please write us back and let us know what you decided to do or provide more information about the commission only job offer!
Erik Bledsoe, CEO
SurfYourName.com
info@SurfYourName.com
1-888-300-8776
Visit the SurfYourName.com Facebook page
April 14th, 2012 on 9:53 am
Thanks a lot for the info. I work in retail sales right now and I enjoy it, I love working with people and I have never found a stranger. I have a verbal judo instructors certification. I don’t really have a lot of bills or financial obligcation. I just thought now would be be a good time try sales before I have a lot more bills. Furniture row trains before u get started, and they train u for management
April 15th, 2012 on 7:22 am
Andy,
It seems like you have put a good bit of thought into this opportunity and aren’t taking it lightly. If you are comfortable with your sales abilities, then you need to make sure the commission plan is a good one. Look at the average sale price and the commission you would get paid for that sale. Do the math and see how many sale you have to make in a day/week/month to make it worth your while. There are other furniture and commission only jobs out there to compare. I wouldn’t take the first one I was offered until I found out if there is a better one out there.
I have several different commission plans for my sales people and we work out the details to get them into the right plan. While everyone is in business to make money, I want to keep good sales people. It may require me to pay them more, but in most cases, I get what I pay for! I hope this helps and make sure you keep us in the loop on the decision you make! I am looking forward to seeing how this all works out for you and hope you are very successful.
Erik Bledsoe, CEO
SurfYourName.com
info@SurfYourName.com
1-888-300-8776
Visit the SurfYourName.com Facebook page
April 17th, 2012 on 3:30 pm
I went ahead and applied. Just waiting on them to call. What would be a good way to start a sales career,what kind of jobs should I consider?
April 19th, 2012 on 8:45 am
Andy,
Good luck and let us know when you have your interview! I am excited to hear how it goes for you.
Erik Bledsoe, CEO
SurfYourName.com
info@SurfYourName.com
1-888-300-8776
Visit the SurfYourName.com Facebook page
June 5th, 2012 on 9:05 pm
The best way to summarize commission only sales is experience. If you are really experienced in selling to people, and if you are used to starting out dry, and have a backup savings fund to start, and have gotten to know a vast network of people, then commission only is a good idea. If not, then no one would really look down on you if you ultimately weighed the risks and walked away, I sure wouldn’t Again, this is a kind of work that is not for the faint of heart, and also isn’t for someone who hasn’t conditioned his/herself to be able to work 50 or more hours per week. (Your first few weeks are completely about working like a dog until you really start rolling on getting customers and networking) The best way to look at commission only is for what it is: being ready to run your own independent business branch starting really soon.
August 22nd, 2012 on 10:38 pm
I just recently accepted a job as a debt collector and the job is commission based pay. I have some sales experience but not much.. After reading this article I dont know if this is right for me..
September 20th, 2012 on 4:01 am
Hi all,
please help me out—recently I am temporally working in a busy insurance call centre earning a standard salary of 6K (first job),have a banking certificate that I got through participation in a learner-ship from high school , applied for a banking consultant job that is market commission based only, went through the interview and it was a yes but haven’t yet signed the contract, I am 20 years and want to study further or learn more to become a broker..advise would be highly appreciated ..
October 6th, 2012 on 8:43 pm
Hi all, I have recently accepted a comission only job I am due to start on Monday I have some sales experience but not a lot all the workers in the company I have spoken to have all said they get really good wages and have never saw anyone leave without anything at the end of the week.. The company has 4 different offices in the one city and seems well established and has lots of awards around. You get trained up before the job and the sales rate seem reasonable aren’t selling anything as such giving away free loft instillation on behalf of the government? There is also lots of ways to move up and expand and progress Into the company but after reading this article I am having doubts any advice please?