In your role as a sales agent, you might find that some companies would love to have you work for them, but on a commission only basis. This is a very frequent occurrence in the world of sales, but it's understandable for those who are new to industry to have some doubts or concerns.
We have plenty of information on commission only sales, to help you understand the process a little more and to answer any questions you might have about this way of payment, before embarking on your career as a sales agent.
Are commission only sales worth it?
A commission only basis is more risky than sales agent jobs that pay a salary as well as commission, but that doesn't mean these jobs aren't worth pursuing. In fact, you'll find that commission only sales are a lot more common than you might think. Companies are wanting to test your abilities as a sales agent out, before they agree to paying you more for your efforts.
Many commission only sales jobs come with a rather large commission rate, much larger than those with salaries added in. As such, by working hard and achieving your KPIs, you're bound to receive a fantastic payment for showing the company how good a sales agent you are.
Are commission only sales jobs legal?
The legalities behind commission only sales can be confusing, and before you kickstart your career as a sales agent, it's vital that you're aware of what makes a commission only sales job legal.
The key component of what determines a commission only sales job as legal is how the sales agent works with a company. If you are employed by the company, whether that's on a temporary or permanent basis, they cannot offer you a commission only sales job unless they can prove that you will earn more than the minimum wage. However, if you work for the company as a self-employed sales agent, which the vast majority of agents choose to do, then it's legal for the company to offer you a commission only sales job.
How much commission can you get?
Commission rates can vary greatly, but you should expect at least 5% from a fair and responsible business. If a company isn't willing to offer at least 5% commission, the job isn't worth pursuing. Of course, there are companies who will offer much more than 5%, with some businesses offering 20% for your hard work and for selling their products and services to their target audiences.
Some businesses might offer higher commissions for products and services with longer sales timeframes. At the end of the day, it depends entirely on the company and the type of product or service they are asking you to sell.