Working a Job That Pays Commission Only

My husband was in car sales for a long time and I don't know if it was because it was cars, but it was rough. He didn't make much money on new cars and none at all if the buyer got the "family member of employee" discount. The most money to be made was on used cars but it depended on how much the dealership had gotten the car for, how much had been put into it, and what price the buyer was willing to pay. Sometimes hubby had a nice deal put together but his manager would not approve it and would want him to try to get more money. So then the deal would all fall apart and they would end up with nothing, all because the manager got greedy. It just seemed like no matter who he worked for, they were all d-bags. Then the sales really began to drop off in 2006 but the owners blamed the salesmen for not working hard enough, and even hired more guys thinking that somehow more salesmen would translate in more sales. My husband ended up being let go in 2007 because he just wasn't getting the job done - no warning, he was just getting into his car at the end of the day and the manager told him he was done, end of story. He's been the stay-at-home parent since then, and we've been better off having him home for numerous reasons, but it's getting to where he needs to decide to start working again, and he really doesn't want to do car sales again. I really don't want him to either, I know he hated it, but he really isn't qualified to do much else. When business was good he did really well, but when car sales and the economy began to really fail, his income, and eventually his job altogether, went with it. So if it involves cars, you might want to think twice.

When I was on the play pan 13 years ago, I loved being in charge of my own world and being 100% commission only. It was the most lucrative pay pan until I moved to this company (2/3 base, 1/3). I was in research sales, mainly cancer research. I did fantastic and I worked my butt off. They changed that pay plan because people did well...typical. If you or your husband are faced with this, I hope it is a percentage of sales from dollar one!

You have to be very diligent and good at sales.

My hubby has been in sales 25 yrs, never 100% commission. I guess you could say we are now since we own the. Company and if we don't make sales, we don't have customers paying us, hence I don't process a payroll check. Our company is just hubby, daughter and I. We didn't take payroll over a year to get things established.

If you do it, don't opt for the "draw" where they pay you based on your potential commission, you'll end up owing the company money!!

We own our own company now in the same industry. No sales=no pay. We own the company, I run all financials. We know what we need to profit monthly in order to take care of everything. Some months are huge and we might sell 1/2 million one month ( often times) but.... When we take our profit.... We plan for the months that sales are much lower than that. We'v had a high month bring home in the $50K area and as low as $10K. Its work... Its stressful...

We both work from home, are volunteers at th school for daughter's cheer and I substitute teach. We do bring in well over 6 figures but we also believe in multiple income streams, no debt and living below your means.

It takes a lot of self discipline and delayed gratification. It is not for everyone. I see a lot of people get that huge check and go on a spending spree not thinking about the months that will be lacking in sales.

Eta; one reason we went the route of funding our own company was that hubby's employer was cutting the commissions due to the sales force making too much money. Might as well work on our own !

Well, first of all, you have to be willing to actually work in order to get paid. And work hard. Sometimes you have to work even harder with strange hours.
Performance + Sales = $$$

Also, it depends on what you're trying to sell.
If people don't want it, don't need it or can't afford it, you're hosed.

Just my opinion.

TF is right, you have to be a go getter and very dilligent. You don't work, you don't get paid. My husband has sold Aflac for 12 years and is one of the top agents in AZ. I have owned an insurance agency for the last 6 years but recently have started selling vitamins/dietary suppliment and I make MORE at that than I do insurance. The bad thing about commission only is if you have a bad month, it can be very tough. You also don't know what your check will be. My husbands pay info is available online the weekend before he's paid and I get an email saying how much my check is when my check from my general agent is in the mail, not before. And we get paid once a month. The vitamins get paid right away as well as new Aflac sales. The GREAT thing is when you have a great month then you get a GREAT check. One month my husband got over 10k and once it was $1500. So you have to still be reasonable every month no matter what your check is. Its also great because your schedule is flexible. Although I "work", its from home so I'm here when the kids are home before and after school, half days, all summer, breaks and holidays. I personally could NEVER go back to work in an office with a boss, set hours and set pay. NO WAY! We make way over 6 figures, even in this economy and we are both available for the kids. So it isn't for everyone but I personally like it. Good luck with what you decide to do.

My husband started working commission sales about 3 years ago. I think it all depends on what you are selling, what the economic climate is for what you are selling and most importantly...how hard you are willing to work. He works very hard and is often doing quotes, etc. at home in the evening. It's not just a 9-5 type of work.

We have been fortunate that he has done very well and it has been a great opportunity for our family. It has also been an adjustment in mindset. Some months will be great as far as commissions paid and other months will be quite lean. It ebbs and flows and you have to be diligent about saving from the good months to cover the bad.

I still work full-time which has always given us a safety net, so that eased our fears a little bit. When my husband took the job, it was a total leap of faith on our part, but it has paid off. If it's something you are considering, I would try and make sure you have means to cover your expenses for a couple of months and also research what you are selling and the economic environment surrounding the field.

My husband has been in the car business for 20 years, most of that time working for 100% commission. I'm a teacher, so at least we have my steady income to depend on. In the early years of our marriage, it was very difficult for me to learn how to trust in my husband's sales abilities, and learn how to save money in the good months so we would have money in the lean months. It has all paid off. My husband has worked as a salesman, as a finance director, and in management. Now he is the internet director. For 15 years or so he has made more than double my teaching salary, but there are still some months that are better than others. The thing that he has had to learn to do through the years is balance work and family because as someone else mentioned, he doesn't make money if he isn't selling. That caused him to want to work ALL THE TIME. Finally seven or eight years ago he realized that family is more important than money, so now he has learned to balance work and family. He used to work 6 days a week, 12 hours a day. Now he works 5 hours a week and leaves early at least one day. He still has 4 12 hour days, but it's better than before. I hope this answers your question. :)

Briefly, recently, I did this with ad sales...to help a friend starting a publication. VERY difficult. VERY VERY difficult and if I had the stomach to break it down to dollars per hour--pathetic. LOTS of time involved, LOTS of organization and LOTS of motivation. For me, totally not worth it.

Not a fan.
Especially in this economy.
Base plus commission still isn't ideal in this economy but is better than
commission only.
If I was looking for a job now (or even 10 years ago), I would not take one
that was commission only.