Considering a commission-only sales job? In today’s blog, we discuss the pros and cons of commission-only jobs so you can decide if this type of career is right for you.
In a commission only sales job, employees make a predetermined percentage of every sale they make but receive no base salary. Because of this lack of base pay, people with commission-only jobs make a higher percentage of commission on their sales. In effect, their entire paycheck is based entirely on how much they sell in a given time frame.
Are commission-only jobs worth it? It depends on the job, the company, and your personality. Here are some of the pros of the commission-only jobs.
When you have a salaried job, you make the same amount of money every month, regardless of how hard you work. But with a commission-only job, you can anticipate future financial needs (an upcoming vacation, a kid who needs braces, etc.) and alter your work schedule and work ethic accordingly, in hopes of making some extra cash.
Perhaps the biggest advantage of a commission-only job is unlimited earning potential. While some companies cap commission at a certain number, AIFP offers our traders unlimited earning potential, which means that the more they sell, they more they make.
Commission-only jobs tend to be more flexible and allow for you to create your own business. While you’ll likely have a boss who’s available for support and mentorship, if you’re hitting your numbers, they tend to take a hands-off approach that allows you to manage yourself. That’s why it’s especially important that you’re self-motivated with a strong work ethic if you want to thrive.
Aside from any formal company performance reviews, people in salary jobs might be in the dark about how they’re actually performing in a given week, month, or year. With commission-only jobs, it’s easy to see how you’re doing each month based on the amount of money you make. Furthermore, this transparency allows you to notice patterns and figure out exactly what is and isn’t working in your sales strategy.
While commission-only sales jobs offer a lot of perks, they’re not right for everyone. Here are some of biggest cons of commission-only jobs.
The flip side of unlimited earning potential is that while you can have high-performing months where you make lots of money, if you have a slow month and don’t make any sales, you won’t have any income coming in. That’s why it’s important to have the right temperament for commission jobs. Commission-only sales jobs work best for people with a high threshold for stress and a lot of confidence to help them better navigate slow months.
Especially if you’re new to a commission-only job, you may be viewed as high-risk if you’re looking to take out a loan. That could mean higher premiums and interest rates due to the lack of a guaranteed steady income.
One of the most challenging parts of a commission-only sales job is the fact that your sales are often subject to outside, uncontrollable market factors and slow seasons.
If you’re looking for a great commission-only sales or trader job, look no further than our 24-month trader training program. Not only do we provide the training and support you need to succeed, but you’ll receive high-quality mentorship from successful traders to help you begin building relationships with potential buyers and sellers. If you receive positive performance reviews, you’ll be hired as a trader and you’ll graduate to our generous commission-only pay structure.
To apply for a career as a commodity trader at one of the best places to work in Portland, OR, send us your resume today! In the meantime, check out the AIFP blog where we cover everything from what it’s like to work at AIFP to why company culture is so important.
Up for the challenge? We'll give you the tools to excel. AIFP is continually growing. We recruit new traders year-round.
There is no substitute for hard work. If you really want to make and run a business here, you have all the tools available to you here.Billy Culver Trader, European Products Department Head
I really enjoy the freedom to create your own customer base and build a business trading the products you want to trade. While being the hardest thing I have ever done, being a trader has also been the most rewarding!Alex Schilling Trader