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Have you gotten to the point where you can’t increase your income in your current job? This is the case for most fixed-wage positions, where you cannot negotiate your salary until you reach a management role or C-level position. Fortunately, commission jobs allow workers to grow their pay as they earn a percentage of production resulting in financial gains.
Many people hesitate to take a commission-based job because of the risk of a slow production month. Nevertheless, some professionals feel motivated by the possibility of gaining more money out of their efforts.
If you identify more with the second group and have transferable skills for sales, keep reading and find out why commission jobs are the right choice for you.
In order to myth bust the fear and misbeliefs around commission-based jobs, it’s essential to set the basics. Commission pay is a type of performance-based compensation in which your earnings are defined by the goals you accomplish. Due to its nature, commission jobs are more related to sales positions.
Sales employees’ compensation packages may vary from company to company, but they’re usually integrated by salary, commissions, and/or signing and stock bonuses. In those cases where workers have a base salary and bonuses, these are fixed amounts and don’t change with performance. Contrary to these, sales reps’ commissions strictly reflect on your display of the role; therefore, earnings may vary from month to month.
There are different ways a commission can be set up. The most common approaches are by flat rate or percentage. With a flat rate, you get a dollar amount for a certain number of completed tasks or deals. While profit rates are set according to the value of a specific metric; depending on the type of business, the employee gets a fraction of the yearly salary of a new hire placed, the value of a sale, or a new partnership contract.
Here are some of the most common commission compensation packages in case you want to land a commission job.
Truth be told, commission jobs are only for a specific type of person. While some may get motivated by being in control of their income, others may find stressing the uncertainty of not having a fixed salary every month. Fortunately, if you’re a resilient individual with a strong drive, there are various commission-based jobs to take control of your earnings.
Here are some of the best commission-based jobs that will allow you to increase your income considerably while keeping your career path on track.
Arguably the most classic commission job and the most profitable too. Nevertheless, it’s not plain sailing for real estate agents since their salary is usually entirely defined by the commissions from the properties they sell. Although many people believe a real estate agent’s job is only to find houses that fit customers’ needs, they also work with sellers to determine a fair market value, list their homes, and negotiate offers.
Getting a real estate mentor may be the easiest way to get a role in this industry, since they can teach you how to work as a mediator between buyers and sellers, organize home appraisals and inspections, and introduce you to their customers and other realtors within their network.
Even though it may not figure among the highest-paying insurance jobs due to the commission-based scheme and its variable payment, being an insurance sales rep will lead you to really substantial earnings if you’re proficient in sales. In this role, you’ll be mainly responsible for reviewing insurance needs and offering coverages based on your client’s assets and budgets.
Getting a sales position also works as an alternative to making a career change or shifting to a different industry. When you aim to land a high-paying tech job, roles with commissioned-based payments can lead to substantial earnings, especially when you work on software implementation for companies or specific clients.
As a software sales rep, you’ll have to work closely with a client list to understand their software needs better so you can adequately offer one of your suites as a solution. Keep in mind that a good salesperson knows their product, so you’ll need thorough and detailed training in the programs you’ll be offering.
If you’re more proficient with business-to-business sales, the manufacturing industry is another excellent choice for your career path. This commission job is mostly about getting other companies, usually retailers, to purchase something your company produces. Therefore, any former experience or contacts in the manufacturing industry will quickly set up for success.
The commissions for these roles are very straightforward too. Since the sales of these roles are more on the value of the deals or partnerships you make with retailers, your pay will rely on the percentage your company offers you out of every contract achieved.
Although this is not the average sales rep role, the travel agent position is commission-based. Vendors often use bonuses to motivate travel agents to include their properties, services, and other add-ons on their sell packages. If you don’t feel comfortable about cold calling and building a client base, this commission job will be more attractive since customers are more used to coming to you looking for travel options.
If you’re more oriented to the marketing industry, you can make a living selling ad spaces to companies, such as billboards, radio and magazine ads, or television commercials. This role will also allow you to use your creative skills as you’ll also assist with creating advertisement copy and ad designs.
You can try the digital marketing sales alternative if you’re more related to the technological landscape. Your core task will remain similar, with the difference being that the ads and services you’ll sell will be for digital businesses.
As you have seen by now, not all commission jobs are related to sales. If you don’t feel comfortable as a salesperson, you could try other types of more people-oriented businesses. Despite being a commission job, becoming a recruiter can lead you to solid, high earnings if you’re proficient in setting connections with people.
Although what recruiters do may vary depending on which stage of the recruitment funnel they’re focused on, they’re matchmakers. They streamline the hiring process, arrange job interviews, and fill openings by connecting candidates with companies, and from every successful placement, they earn a percentage of the job seeker’s yearly salary.
Another position with a different seller-client approach is the pharmaceutical sales rep. They’re in charge of introducing new medications and products to doctors and medical professionals and teaching them about their uses, benefits, and how these differentiate from the competition, so they ultimately prescribe these products to their patients. This means pharmaceutical salespeople must stay up to date with the latest trends in the market.
The mortgage sales rep is a commission job that allows you to work as an advisor for potential clients. They usually guide buyers to get the funds needed to buy a home or contact existing homeowners to refinance their mortgages. Although there is a misbelief that mortgage reps only go after a commission, you could use this position to educate customers on the loan programs and rates so they can pick the one that fits their financing needs.
When it comes to industry-specific commission jobs, sales engineers are another superb option for professionals from the technology or manufacturing sectors. Despite being a sales position, people wanting to apply for this role need plenty of technical expertise since they need to prepare technical presentations and adjust products or services based on their customers’ technical specifications.
If you’re looking for a new role that allows you to achieve financial freedom and be in control of your earnings, there is a wide variety of commission jobs to pick from. Depending on your background, you could even use it to get a head start on your commission-based position.
Even if you don’t feel comfortable with direct sales, there are a few other options based more on social skills, making partnerships, and matchmaking, such as recruitment. If you’re curious about a career as a recruiter with gpac, make sure to reach out to our talent acquisition executives and learn more about the craft.
Contributed by Luis Arellano
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