Commission-Only Sales Jobs

Commission-only sales jobs are one of the best ways to earn a good income in today’s economy. There are many sales positions out there that pay commission only, but are they worth it? 

First, you can ask yourself if the job is providing you with a fair commission share. It is understandable why some believe that commission-only sales positions are ideal, especially those just starting and with minimal sales experience.

This article will help you understand what sales commission is and how it works, as well as what high-paying sales jobs are only commissioned-based.

Types of Commission

Commissions are paid to staff or consultants who arrange or complete financial transactions on behalf of businesses to market services or goods. Commissions are predetermined defined rates of pay dependent on income earned, such as a percentage of revenues. However, certain positions pay solely on sales commission, and others have a base wage plus commission.

Pure Commissions

Straight Commission

It is the purest type of commission, with employees compensated purely based on their profits (more discussion in Commission Calculation section).

Draw Against Future

Commission pays employees a salary withheld from commission earnings after they are earned (more discussion in Commission Calculation).

Salary Plus Bonus arrangements

That is the practice of establishing a regular wage supplemented by a lump sum payment when workers meet such revenue targets.

Bonus commissions

They have an incentive to recognize workers for their accomplishments. These incentives are paid on top of an employee’s regular salary as well as typically depend on pre-established earnings targets.

Salary Plus Commission

It entails setting a base wage for sales employees and then supplementing it with commission income dependent on sales produced. 

Variable commission

In this arrangement, easy-to-acquire purchases will be compensated differently than difficult-to-acquire sales, thus encouraging development in particular markets. 

Graduated Commission

It is performance-driven. A business may establish several levels, and an employee is compensated based on revenue attained. If an individual achieves more significant amounts of revenue, the actual commission percentage will rise incrementally at a fixed pace.

Residual Commission

In this setup, an employee can continue to earn a commission on a transaction for as long as it generates sales. Employees profit from this form of commission because it allows them to create a stable commission income from their remaining sales.

Commission Calculation

There are many structures that employers use as a basis for calculating commission. We’ll discuss the top ways to calculate your commission below!

Straight Commission

Straight commission is paid to the salesperson for the sales they generate. In contrast to specific other models, employees will not necessarily have a base wage. Businesses can take this approach to minimize overhead costs or to help motivate their salespeople.

Formula:

Sale x Commission Rate = Earnings

Your take-home salary depends on the agreed-upon proportion of revenue. Businesses profit from a pure commission structure since they are not required to pay money until an individual generates business. 

Draw Against Commission

As in the straight commission model, employee wages entirely depend on the amount of revenue generated by the employee. This model takes a unique approach. Employers compensate the employee in advance and then subtract the balance from any future commission. They have to borrow this money from their employer and repay it with their commission.

Formula:

(Sale x Commission Rate) – Advance Payment = Earnings 

The employee has a balance if they do not make enough to pay back the advance. If an employee cannot meet the commissions on the draw, they would owe the corporation the number.

Top Commission-Only Sales Jobs

Commission-based jobs involve a high level of self-motivation to complete income-generating activities individually.

These are some of the highest-paying commission-based sales positions accessible and their respective annual salary. All data below is from the Bureau of Labor Statistics (2019.)

Sales Engineers

Median Pay: $103, 900

Salary Range: $15,180 – $174,270 (Bottom 10% – Top 10% earners)

A sales engineer is anyone who works for companies to sophisticated market science and technical goods and services. They must have a thorough understanding of the products’ components and functions as well as the technical processes that allow these products to operate.

Wholesale and Manufacturing Sales Representatives

Median Pay: $59,930 

Salary Range: $30,530 – $125,300 (Bottom 10% – Top 10% earners)

These sales agents work with private businesses as well as government departments to market goods. They may be responsible for identifying new customers, assisting current clients with product understanding and selection, negotiating prices, as well as preparing sales contracts, among other responsibilities. 

Securities, Commodities, and Financial Services Sales Agents

Median Pay: $62,270

Salary Range: $35,320 – $204,130 (Bottom 10% – Top 10% earners)

Securities, commodities, and financial markets distribution agents acquire and dispose of securities (e.g., stocks, bonds) (e.g. gold, corn). They keep an eye on capital markets, counsel businesses, as well as offer shares to private investors.

Advertising Sales Agent

Median Pay: $53,310

Salary Range: $25,390 – $118,300 (Bottom 10% – Top 10% earners)

Often known as commercial sales representatives, these people offer advertising space to companies and individuals on streaming, radio, as well as print media outlets. Their role duties entail prospecting for new customers, managing existing business accounts, as well as delivering sales presentations.

Insurance Sales Agent

Median Pay: $50,940

Salary Range: $28,000 – $125,500 (Bottom 10% – Top 10% earners)

Insurance sales agencies typically specialize in one or more lines of insurance, such as life, fitness, or land. They make touch with prospective buyers, clarify the characteristics of different policies, as well as assist consumers in making package selections. Additionally, they plan program renewals as well as keep records.

Real Estate Brokers and Sales Agents

Median Pay: $59,720

Salary Range: $23,600 – $178,720 (Bottom 10% – Top 10% earners)

Real estate brokers and sales agents perform related functions, assisting clients in purchasing, selling, as well as renting land. Real estate agents can run their own real estate companies, sales agents can only operate on a contract basis.

Travel Agents

Median Pay: $40,660

Salary Range: $23,660 – $69,420 (Bottom 10% – Top 10% earners)

Travel agents schedule, book, and offer travel on behalf of individuals as well as groups. They will arrange for transportation, accommodations, and events, such as community tours as well as day trips. In fact, they typically often prepare for alternate arrangements if the itinerary changes throughout the journey.

 

These are just a couple of things to consider when trying to figure out how many high-paying sales jobs are commission-only. If a company does not compensate its sales employees fairly,  then you should take the first step.