Commission-Only Employment

[Teacher's Pet]

I work in sales.

 

With my current company, I am considered "successful", yet my bank account hardly agrees.

 

This, and other factors are making me look elsewhere.

 

Yesterday, I got a call from a recruiter of a "well-known" company looking for sales reps.

 

NO base pay (except for 8 weeks of paid training), commissions based on gross sales (plus potential for bonuses).

 

They offer full benefits, medical, dental, etc.

 

The earning potential is definitely there. Again, this is a VERY well-known national company, and I know one person working for them who does VERY well.

 

I'm just "nervous" about the whole "no base pay" thing.

 

Anyone here have any experience in commission-only work?

 

-TP

and for that matter, anybody in the market for.....????

[clia]

I'm not in sales, but I do something similar to commission based employment -- as in, if I don't deliver, I don't get paid.

 

As you know, it's all risk/reward.

 

When you don't have any guaranteed income, it's huge stress (at least through a certain point of the year) -- however, the results can be massive if you have a good year. The first year is the hardest. After that, hopefully things start to even out -- i.e. you might have a great year one year, a mediocre year the next, a good year the next, then a bad year. But the bad year gets somewhat covered by the good years you've had previously, provided you are smart with your money and don't just blow it all when you have a great year. And...when you have those good years it gives you more to sock away for retirement. This is even better if you are young -- more time to accrue so you can retire early.

 

On the other side, the stress is lower because you know you have guaranteed income, but you make less.

 

How confident are you in your abilities? Sometimes its worth it just to roll the dice and take a chance. Lots of people do it -- why not you?

[pink_sugar]

Definitely agree with the above. You can't predict or measure your own success because you hear of someone else doing well. Some people do very well at commission only, some don't. It's up to you to decide if you want to take the chance. For me personally, I wouldn't accept something without a base pay. I need to be sure I'm making enough to pay my bills. That's the issue with commission only. You can make very well some days and nothing the others. Be prepared to work around the clock, because that is the only sure way you can guarantee money coming in.

[PhillyDude]

I have been employed at a performance based type of company but not a sales position.

 

Sales jobs are sink or swim positions

[amaysngrace]

Are you able to take a draw? My exH is in sales and some places he's worked had allowed him to draw every week which they took back from his commission.

 

Is that an option?

[mustangguy29]

How well do you manage your money?

Pure commission based pay is very hard because of the stress, of not having a baseline to budget off of.

The only way I think you can be successful with it is if you manage your money very well, and can set money aside in good times to buffer against the bad times.

 

I am normally very good with money, but the problem I experienced with it was that money stopped having a fixed value in my brain.

I got paid weekly and if I had a huge week I might run up a huge bar tab and not care, but then the next week, when things were slower, I was wishing I hadn't spent so much money.