When you start new sales jobs, some employers give employees the option of selecting their desired commission plan. This can range from accepting a higher salary with a lower commission or opting to be paid based on your individual sales. There are often scenarios where you may move to higher commission brackets after you meet certain targets as well.
High Salary, Low Commission
Sales jobs with this type of commission typically involve inside sales, where you are given lists of customers to cold call. This type of plan is good for beginners and people who feel uncomfortable without banking on a set, guaranteed paycheck.
Low Salary, High Commission For Sales
People who thrive on personal relationships and individual transactions may be able to earn higher income by accepting a lower salary and a higher commission. If you are an experienced rep who can really sell, this type of contract can allow you the freedom to earn unprecedented sums of money.
Sales Jobs With Incremental Raises
You can also increase your commission over time as you sell more and more, and meet important company objectives or milestones. Sometimes sales jobs set impossible minimum standards, which can be discouraging to workers, so that is one thing to watch out for. Sometimes companies set individual milestones, while other times, they set a total sales goal for their entire team.
What Position Are You In?
At the end of the day, you really have to contemplate where you are in your career and what you want out of sales jobs at this point in your life. For instance, if you’re just starting out, you may want a ceiling-less commission structure to see how much you can possibly make. On the other hand, if you have a family to support, then you might want a more stable income.
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