You probably expected this item as you should expect the ability to earn an unlimited income in every sales position. But there is a difference when it comes to commission only positions as several do "top out" at a certain earnings level. While employers may try to disguise a top earnings potential limit with additional compensation opportunities, these truly do not offer unlimited income potential.
As an example of such a position, consider a position that allows sales professionals, who work solely on commission, the potential to earn up to $150,000 in annual commission. Once that earnings level is met, the rep can earn awards, prizes trips or can "roll over" a percentage of sales into the next year.
No matter how it is framed, any position that limits the amount of commission you can earn should be considered very closely before being accepted. And while you are closely inspecting, don't be seduced by a company that promises unlimited earnings potential but that markets a product or service that is either too general (and therefore viewed as a commodity) or too specific (resulting in very few sales opportunities.)
Here's where you will need to make a choice. Some commission only positions offer benefits (health, dental, vacation time, sick time, etc.) to their sales employees and some view their sales reps as Independent or Contract sales reps. If you feel you cannot stand the idea of not having an employer-sponsored benefit package, then you should only consider positions that consider you an employee of the company and offer a benefits package.
But if you have what it takes to be a sales entrepreneur or don't need to work for a company that offers benefits, then make 100% certain that the hiring company does not place too many restrictions on how you manage your time. You should have the freedom to sell other non-competing products or services and continue to do so as long as you deliver whatever revenue expectations to which you and the hiring company agree.
Commission only positions often offer a tremendous amount of freedom to their sales reps and, as a result, have some of the top sales professionals in the world of sales selling for them.
It may seem strange to include advancement potential into a list describing the main benefits to commission only positions, but when you consider that many who accept a commission only position may not want to always stay in a commission only position, you'll understand why this is a benefit to look for.
Not only is an advancement to a salary plus bonus position a potential benefit, so too are advancement opportunities to positions that continue to pay only commissions, but that includes, as part of your earnings package, a percentage of sales commissions sold by other reps.
Unlike traditional multi-level-marketing companies, several sales businesses employ sales leaders that sell and earn their commissions and also provide training or support to others selling for the same company. Companies like these usually offer advancement opportunities to their sales professionals who demonstrate both a strong skill set in sales and the ability to help others improve their sales skills.
Benefits to a Commission Only Sales Position
Commission only sales positions. The thought alone can strike terror into the hearts of many. But there are a few key reasons why intentionally choosing a commission only position may be in your best interest.
However, commission only positions are not for the faint of heart nor are they always the top paying sales jobs available. In fact, many commission only jobs are positions that should be well thought through before being accepted.
If you've done your homework on the position and have determined that the position is one that you would like to hold if it were a salary plus commission job, then put it to the litmus test and make sure it offers these key benefits.