There are two types of people in the world: the ones who love a stable salary, and the ones who love a commission-based job. Both structures have plenty of benefits and pitfalls, and it all really just goes to what model fits you better. Constantly putting effort to maintain or increase your income level is definitely not for everyone. However, if you have a set of primary skills, a commission-based job can be the right choice for you.

What is commission pay?

A commission based job is a job where your income is partly or fully dependent on reaching a certain goal, like selling products, closing deals, or bringing in new hires. There are various types of commissions, including straight commission, salary plus commission, and variable commission. Depending on the industry you work in and many other factors, the structure of compensation can differ.

What are typical sales commissions?

Taking the sales industry as an example, the range of offered commissions can be very different. Depending on the position level and your experience, usually, bonuses vary from 5 percent to 40 percent. The average rate of a commission-based sales job is 20-30 percent from gross margins.

Benefits of a commission-based job

Essentially, there are many advantages to this pay structure. However, they will turn into real benefits only for certain types of people. If you know how to listen to people’s needs and how to connect, a commission-based sales job can be an option for you. You also have to understand that your income actually depends on the effort you put in the work, so whenever you have a bad month or sales period, it may reflect in your paycheck.

The most significant advantage to working for commission is the freedom to control your income, schedule, and customer flow. However, freedom comes with responsibility. If you are ready to take responsibility for your own work and commit to it, the commission-based job can be a win-win decision.