Should I Take a Commission Only Job?

So, you're thinking about taking a commission based position. No doubt, you have been told about how fabulous the opportunity is and how much money you could make. The truth of the matter is, commission based jobs are among the best, and worst, paying positions in the country. Some of these positions truly are amazing opportunities. Here are some things to think about before you commit to such a position.

1) What income streams are available to you when you first start out? How about in the next few years?

There is one absolute in anyone's life. It's Time. Each of us only has so much of it. In a commission based position, the earnings potential is unlimited, until you run out of time. For this reason, you need to explore with your prospective employer, how you can continue to grow your income when you've hit the, "I can't see anymore people in a day" wall. Here are some examples:

Team building bonus- Many commission based companies will offer people additional commissions on people they bring into the company.

Renewal Income- Does your prospective employer provide you with on-going commissions as long as the person you have sold to keeps the service?

Stock Bonuses- Does your employer offer profit sharing or stock compensation?

Management Opportunities- Can you eventually move to a management position and profit from the people you manage?

Multiple streams of income are important to ensure money keeps coming even if you can't work for a few days. Remember, commissions only come when you work, so having a back-up plan is imperative.

2) How much will you likely make per sale?

Find out what the average sale per client is for your new prospective employer. How much money does the average sales person make on the average client? This information is critical when you remember that there are only so many working hours in the day and only so many clients you can see per hour.

When you have the number, multiply it by the average commission earned for the products you are going to be selling. The idea here is to determine how much you will make each time a prospect says, "Yes."

3) What is the average closing ratio in your future company?