10 Questions To Ask Before Trying That Commission Selling Job!

It seems like a long time ago that what we used to think of as “good jobs,” those that offered solid salaries, bonuses, and nice perks, abounded.

These days, especially in sales, you are more likely to scan job listings and see “direct commission” compensation schemes. These are essentially pay-for-performance opportunities.

If you act, you get paid; if not then no.

It is Darwinian, a survival of the fittest atmosphere. Still, commission jobs tend to offer higher than average potential, and if you can hold out until the faucet runs, then you can thrive.

Here are 10 questions to ask any employer that offers a direct commission payment plan:

(1) How long have you been in business? Be wary of start-ups, because no one really knows if your business concept will be successful.

(2) How well is your best seller doing financially? Key question, this is it. If you hear a solid number, divide it in half and that is what you will probably earn in the first few months.

(3) How long did it take you to get there? This is a vital cash flow issue. Can you survive until you start getting regular paychecks? You may not have the time to invest to go from A to B.

(4) How long will it take for your bestseller to make their first sale? Did you get lucky and shut someone down on the first day or week? However, did he fight? If the best seller had problems, multiply the time spent on the first sale by a factor of at least two or three, for yourself.

(5) Details of the Commission’s plan? What percentage are they paying? Is there an appropriate incentive? Possibly, you can negotiate this to make it more attractive and valuable enough for you.

(6) How well is your worst person doing? If you allow people to fight for weeks without substantial rewards, that’s a bad sign. There should be competition to win a place on your team, and the worst players should be eliminated quickly.

(7) Is this a scripted sale and can I combine it with my own? If they have a script and it is a proven success, this will save you a lot of time, assuming you follow it. If they do not allow deviation from it, they have either sold themselves to a science or are unnecessarily strict. Especially if you have a commission, you shouldn’t care HOW you sell, as long as you sell and do it honestly.

(8) Are the hours flexible? If you are an independent contractor, this means you can come and go, with some general limitations, as you see fit. Some businesses have a set start time and want everyone to be there for announcements, updates, and the like. But if you try to set the specific workday, unless you are paying for your TIME, you are overreaching. By doing this, they deny you one of the perks of being a commission salesperson: setting your own pace.

(9) At what intervals are commissions paid? This is significant. If they don’t pay weekly, you should raise a flag. You shouldn’t be their bank, which is what you become with shorter payment intervals.

(10) Are there reserves for chargebacks? When are they released? Chargebacks, or reductions in your paid commissions, can occur when orders are canceled or not paid to the company, as agreed. Naturally, companies try to protect themselves against paying a commission for a deal that doesn’t go through. Consequently, they can withhold 10-15% of your check. Ask them when these funds will be released to you, and if you leave your job, will they continue to pay for your reservations after you leave?

A commission sales job can be a fantastic opportunity. It offers the possibility of great rewards with flexible hours, and is perhaps the closest you can get to being in your own business without much hassle.

But be sure to ask these ten questions before you jump into the fray. It could make the difference between winning or losing an important payment!