Pros and Cons of 100% Commission

by Jade Handy on June 13, 2013

replace fear with curiosity mediumThe pros and cons of 100% commission are simple.  If this were a fireside chat, this is what I’d say.

Having been a salesperson for 20 plus years, I have been at all points of the spectrum. I have experienced the the pros and the cons, upsides and downsides. Trust me. I did’t fly our of the womb knowing what I know.

Let’s say you have an interview, but it’s for 100% commission and you’re not happy about it. That’s the downside.

The upside is you have an interview, …AND it’s for 100% commission! 100% is where you should be. It provides more security and income for a sales professional, like yourself. You’ll be paid what you’re worth. After all, isn’t everyone, ultimately?

I hear you – I hear you. “Yeah, but I really need some money.” Thinking a salary gets your bills paid faster. That’s the downside.

The upside is that 100% is much faster money than 30%! Meaning, how long does it take to cut one deal, as opposed to several?? Here’s a math story problem to solve. Remember those back when you were in school (and full of a no-holds-barred, sparks off the guard rail “go for it” attitude.) Say you need $5000. How long does it take to get to $5000. at a 30% commission, vs. 100%?

Less, that’s how long. Especially, with your experience, resources, and contacts. If you need even less than that, then it’s even easier to get where you need to be!

Still thinking you’re damaged goods at your age and with your resumé? That’s the downside.

The upside is that not being as tied to someone else’s selfish interests, misaligned objectives and priorities is extremely liberating! You’ll have less risk of another career change. Companies have less to loose if they keep an under-performer on the team (if you’re worried about that.) Not saying they should, but there’s more job security than one where they are paying you a salary and need to get an ROI more immediately. Everyone is paid what their worth.

Also, 100% position usually is one tied to a “you work for me, or I work for you” management mentality. In other words, a salesperson with experience and work ethic should be able to be left to their own devices.

Don’t knock it ’til you try it.

Final score?  100% is where you want to be.  If not, find another profession, because sales is probably not your cup of tea.  100% commission is where the real sales animals live.


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Photo Credit: *Zephyrance – don’t wake me up. via Compfight cc

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