Commission-Based Jobs: Ultimate Guide to Working In One or Hiring Them For Your Business

Cody Cromwell
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What A Commission-Based Job Is

A commission-based job is a job where you make money based on sales or services that you sell to other people. This can include anything from selling a product or service you own, advertising a business, selling advertising, sales, and consultation.

A commission-based job differs from a salary-based job in which you receive a fixed salary for a specific task.

The main difference between these two jobs is that with a salary-based job, you’ll always earn a set amount of money each and every paycheck, as indicated on your pay check. But with commission-based job, you’ll find yourself earning much more than the set salary on some paychecks and much less on others.

With commission-based jobs, you’re in charge of setting your own pay rate. You set your own job hours based on your comfort level.

In most commission-based jobs, there are no vacation days, sick days, paid holidays or other benefits. Since you set your own pay rate, there are no set work hours you’re required to work.

There are no travel expenses or employer-paid training expenses in commission-based jobs. You set your own job hours based on your comfort level. Most commissions are due within a few weeks because of the high volume of sales you might need to handle in such a short time period.

What Kind of Jobs Are Commonly Commissioned Based

There are a few fields where you hear the term ‘commission only‘. With sales, commodity trading and online marketing being the most popular. But, when it comes to being a true, commission based job, the only name that really goes in lights is forex trading.

While you will definitely start to see more in the future, the history of forex trading has led to a large number of agents or traders being hired to trade on their behalf. The primary reason for this is that forex market is so huge of demand that a single individual can easily make it in the market.

Though you might not have that much of a forex experience, there are still numerous markets being traded through agents. Examples of these markets are the commodities like gold, oil or platinum and a handful of other digital currencies. All of which are majorly used as tradable commodities amongst large organizations.

Also, if you are willing to work in the options market to hedge out positions, it’s also another place where you can be hired as a private forex trader. One thing that’s common amongst all of these markets is that they promote a high potential to earn.

Why You Would Work in a Commission-Based Job

If you’re looking online for a completely new career, or if you already do have a career but are looking for something different, you’re probably considering a commission-based job. Commissions can be, in a way, a way to be your own boss – but only if you have the time to do it.

Commissions are not like other jobs, where you are hired and paid for your services. Because of this, it’s important to understand the perks of the position and to be clear if you’re looking to work full time or full time – dreaming. Commission-based work comes with a lot of flexibility, which some people enjoy, whereas for others it can be a bit difficult.

You can earn higher pay and find more challenging work if you’re willing to work a full time schedule and assume responsibility.

Writing Articles Online
One creative way to earn a living and work from home is by receiving payment for writing online content. You might think that writing online content is as easy as creating a blog, but it’s not quite that simple. It’s all about identifying the pay you are being offered – and if it’s worth it.

Why You Might Hire a Commission-Based Role

Commission-Based Jobs are the latest trend on the Itenian job market and are becoming very popular with the rise of the so called “gig economy” where people can work with a certain amount of flexibility. These types of jobs are becoming more and more popular because of their flexibility and the ability to set your own working hours and hardly any required office complex, which cuts down your expenses as well.

If you’re like me and love a challenge, you will really appreciate a role in a Commission-Based Job as a whole. The entire concept of this type of job is that the business owner will earn money based on how well they can help their clients.

As for me, I love the challenge of coming up with new concepts and helping people live their goals through the means of a different kind of coaching service. I find this to be very helpful for people who are struggling, but just want to take that first step and try working with me.

Here are some topics to consider when choosing a Commission-Based Role:

Efficiency.

Efficiency is important, because as a business owner, you have to make sure that you’re providing the best quality service for your.

Flexibility.

Will you provide the new hire sales leads, or do you expect them to also prospect for new business right away?

Assuming that you will provide leads. you will need to structure the new hire lead assignments. The importance of proper lead assignment is clear – the better the lead assignment, the more sales they’ll make, and you’ll increase your average commission rate.

There has been an evolution in the way auto dealerships (and, for those unfamiliar, they’re auto sellers who sell other people’s cars, trucks and SUVs) cultivate their new sales representatives within their dealership.

Long gone are the days when new sales reps were given all of the deep product knowledge and one or two leads to begin their career. Now there are a variety of ways dealerships provide their new reps with leads and product knowledge. What’s important to know is that each method has advantages and disadvantages.

What Is a Lead?

A lead is a potential customer that you’ve had the opportunity to talk to. They haven’t yet purchased a car or truck from an auto dealer, so you’re not upselling them and making a commission.

Will this person work from home or remotely, or will they be in the office?

Generally, you will have a good idea of whether the person who is going to hire you is going to work from home or from an office. If he or she is going to be in the office, he or she will probably know and share this with you.

It is also important to know how flexible the person you are going to be working for is. If flexibility is not a high priority for him or her, then you may want to reconsider.

If you are working from home, know how to get to the office area. If you are going to be traveling for work, know where you are going first. Know how to handle unexpected situations or meeting a deadline.

If you have an interview, understand the questions that are going to be asked by the person you are going to be working for. You will probably be asked about your availability and your attitude.

Most of all, be clear about what you can and cannot do on the job. You cannot be a receptionist if you don’t know how to do the reception part, and you will have to adjust and learn everything.

How am I going to train this person on my products/services?

You don’t have to rely solely on internal resources when hiring.

There are numerous compensation plans that you can use to compensate your workforce. PayPal’s commission-based jobs are especially popular, but we’ll focus on ones that are revenue sharing in nature here.

Companies like Incomm, SQN, Distaff, and HubSpot all have commission-based programs that you can use to compensate your sales and marketing team members. Our own FiveFigurePlus is an affiliate program that’s also commission-based.

Why Use Commission-Based Compensation?

There are a variety of ways that you can compensate employees if you’re looking to increase sales. But if you’re looking to hire someone that’s not necessarily going to lead to the highest consumer conversion, you can make an argument for commission-based compensation.

As you’re building your team, the more knowledgeable the employee is about your brand, products, and services, the more likely they can talk to your customers to make a sale.

How to Hire a Commission-Based Role (or Where to Look for One)

There are thousands of methods by which to market. However, if you choose to go through one of the following three avenues, you can easily unleash your sales.

If your product is one that is visually appealing, use designs and pictures to illustrate your product. This will create an interest for your product and allow another person to try it out. If you are not capable of drawing or painting for your business, you can hire a design team. Designers have the ability to create intriguing ways to advertise your product. If an amazing ad is created, it will drive potential customers to your ad and show them what your product can do.

Social media is another great method of advertising. One of the biggest mistakes people make when starting up their company is letting their customers know about their brand and product before it has even been created. Socializing your brand on social media is a great way to gain customers before you get started. This will give you time to see what your customers do not like about your brand or product and adjust your idea accordingly. Once you have taken input from your customers, you can begin designing your product.

Step 1: Write your job description

This is one of the most important steps you need to do before searching for a career. Before you even begin your search for a career, you need to write down your desired job description. Your job description is a well-written and organized list of the job requirement. As a matter of fact, having a well-written job description can help you as well as the recruiter.

Pay attention to the knowledge, skills, and experience required along with the job description. It is the company you are applying for that is looking for a quality applicant. If the job description does not match your career preferences, you might not get the job.

Step 2: Create your compensation plan

Step 3: Post your job

Create the type of job that you’re looking for, whether it’s “sales writer”, “data entry clerk”, “small business researcher”, “online content writer” or “online money making freelance writer”.

Don’t try to create something out of the tutorial, which is not what you are aiming to do. The tutorial stands for a powerful course in the field of online market research, content writing or professional small business research.

Choose and describe a single task that you need done, such as developing an article. You can choose to have your job posted to a few popular job sites, or you can have it posted to a few different job boards, such as Craigslist, Freelance Site and/or Member Base.

Step 4: Wait

Post your job for 30 days, per the creators’ instructions. Then, wait for the empathetic pitches to roll in.

Step 4: Phone screen candidates

Now that you have selected the best candidates, it's time to get to know them better. This might sound fairly obvious, but hey, you're a business owner, but you need to also be a good human with a spine and a mind to commit to a business. The phone screen is the first step toward getting to know each candidate on both a personal and professional level.

Today, businesses use complicated tools like text message and video chatting tools, amongst many others to perform a phone interview. This, though, is where the flip side of the modern world hits you hard. More recently, you have found out that many people are no longer answering their phones or even bothering to return your text. And while there's nothing like trying to have a human encounter over the phone as opposed to a canned pre recorded message, the fact still stands that you're going to have to arrange a time with each candidate and carry out the task of helping them understand more about the job, its responsibilities, timing, compensation, benefits, etc.

Step 5: Have a structured interview with candidates

One of the best ways to make sure you don’t require a bunch of paperwork or red tape to hire a great employee is by using a structured interview.

A structured interview is one where the employer has playdough and some physical items to entice the candidate to reveal their talents and polish as well as their social skills. It’s a well-designed way to make sure you hire a great employee who can add value to your company.

Also, it’s a way for you to see if the candidate can adapt to your company culture. Often times you will have to adapt to the candidate since a lot of times they are already used to working at a completely different company.

For instance, if you’re interviewing a web designer or any department that works with your company’s products, you’ll need them to be able to work well with your IT team and/or engineers. If they can’t, then it’s a sign that they might not fit into your company culture in the long term.

A structured interview can also be great for the candidate, as they will have to go through a group interview. This keeps the candidates from having to answer the same questions over and over again.

Step 6: Hire a candidate for a short contract or training period

Commission-based work is for self-employed or budding entrepreneurs, and if you don't have any prior exposure to the world of the self-employed, this step may be a daunting one. But it does pay to start small! I'm regularly exposed to new folks who share their fears and assumptions about the world of the self-employed.

Self-employment comes with varying degrees of business experiences. Some have developed a strong list of clients and sales, while others have developed a team to support customer acquisition and client service. But what these folks have in common is that they've all learned these lessons through trial and error.

Step 7: Help the candidate to succeed (train them)

Help them get you what you want … and pay them.

If you’re hiring employees, don’t forget to supervise them.

supervise all of the

It’s Well Worth the Effort to Help Prospective Commission-Based

Candidates learn and improve! Trust me … the more you train a

Newbie, the more productive and profitable they will be.

Person, the more motivated they will become ….

I have taken this commission candidate strategy to extremes in my own life. There is often a lot of money to be made in a small niche. So despite my niche’s size, I have been able to support a lifestyle that is far above average.

Pros & Cons to Hiring a Commission-Based Role

There are several reasons why you may decide to hire a commission-based sales job. This type of company offers flexibility and independence for the candidate. However, there are also several downsides to this type of job.

But before we look at the negatives and positives of commission-based jobs, let’s take a closer look at what exactly it is.

The term commission-based sales job refers to a job in which the employer, usually a company, hires an individual to sell goods or services on a commission basis. This means that the individual profits only if he or she sells the product. Alternatively, they don’t gain anything from the work unless they sell the product or services.

This type of job is paid on a commision basis, meaning that you earn a percentage of the sum of all the sales you generate.

So when we talk about a commission-based job, we are talking about a job which pays you on a percentage of the sales you generate.

Now that we’ve taken a closer look at what a commission-based sales job actually is, let’s take a look at the pros and cons of hiring such a job.

Pro 1: You get what you pay for.

Commission-based jobs are more expensive because they require more time and effort to supervise. This is, however, often balanced out by the fact that you get what you pay for. If you value your time, you probably can’t afford to throw it away on a low-quality, ineffective help.

As mentioned above, commission-based jobs involve more work to perform, but they are also very rewarding. When you know that the fruits of your labor are directly linked to your ability to produce quality work, it’s hard not to put your heart and soul into your work. You’ll be motivated enough to do your best work, and your clients and customers will notice.

Most of the time, commission-based jobs are granted to you by your boss or client. Whether you’re asking for a favor or paying money for something you want done, the client most often pays your fee for the job. As you probably know, pay for labor is always cheaper than pay for a product. That said, you’ll have the advantage of working with a job that’s very hands-on and where you can see the results of your labor.

Pro 2: Independent contractors are less overhead.

As an independent contractor you are responsible for managing your work hours. You won't need a receptionist, or even a company vehicle. Your business can be run from anywhere, and you can work whenever you want.

You are only responsible for the success of your business. You set your own rates, decide how much you will charge for your services, and market your own company. You decide how, when, and where you will work.

Some common ways to make money as an independent contractor include:

A website – you can sell advertising space on your site to a local business

People – You could offer to do odd jobs for other people, like rescuing their dogs, washing the car, or mowing the lawn.

Software – the web has created all kinds of opportunities for software developers to automate things that previously required a full-time employee. Join a software team and work from your house.

Commission-based jobs allow you to create your business exactly to your specifications. You will work when you want to and where you want to.

Pro: Independent contractors are in total control of their business.

Independent contractors can handle all of their affairs by themselves, without needing help from their managers or bosses. They can decide how, when, and where they will work. And you are only responsible for your own success, which means you can set your own rates and work times.

Pro 3: With a good salesperson, your sales will soar.

What you need to do is sell in a way that your customers actually want. Meeting customers palates, by playing to their needs.

Pro 4: A good one might know other good commission-based people.

Having a referral is the greatest asset for a beginner considering commission-based jobs. Although there’s no guarantee you’re going to make money, asking for referrals from someone you know is a great way to promote yourself and better understand the commission-based jobs. The other thing that’s a deal-breaker for some people is a bad boss or the potential to make a lot by working only a few hours a month, so it’s smart to get referrals from people you trust.

Drawbacks to Commission-Based Jobs

Many people see commission based jobs as a trap, a system that will lure people in with false promises and then drain them until they’re nearly broke. This couldn't be further from the truth! There are a wide variety of commission-based jobs available, but before you rush out and choose one, there are some important considerations to keep in mind. Just like any job, some commission-based positions will offer a more pleasant work environment than others. This can be very important for making the right choice. Think long and hard about the kind you’d prefer to work in. While most commission-based positions do require some form of internet access, you don’t have to be a web design or marketing guru. In reality, most employers wouldn’t mind if you have a bit of web design experience for your technical and communication skills to shine through.

The Bottom Line

A commission-based Internet business is one that relies on the sale of a product or service by a commissioned salesperson to generate net income. One of the most popular commission-based business models is network marketing. Network marketing, also known as direct selling, is an industry that is focused on selling products or services to new and existing customers in a sales network that sells related products and services.

One of the benefits of this type of business is that the opportunity for a high income exists for a select few people who are able to achieve the required sales volume. The personal income potential can vary significantly based on how much work is required to make sales and on the personal business success rate.

Another advantage of a commission-based business is that earnings can be made during any type of time of the year. In many commission business and sales systems, an annual plan is developed that works into the month of December to account for last-minute shopping and holiday spending.

It’s not unusual for an individual to be able to earn six figures a year in sales for a commission-based Internet business. In fact, the income potential can be well over six figures or more. Since commissions are paid on certain sales volume, it’s possible for one person to earn significantly more than someone working in a non-commission Internet business.