Best Commission-based Jobs – Commission is an additional compensation that is earned based on job performance. When you agree to a commission-based role or commission structure (often by signing an agreement), you agree to pay a certain amount of money that depends on achieving a goal – merchandise sold, closed meetings, hiring, to name just a few examples.
Firms pay commissions to employees or contractors who facilitate or complete financial transactions to sell services or products. Commissions are predefined fixed compensation rates, like a percentage of sales, based on the revenue generated. Some jobs are commission-only, while others pay a base salary plus commission. Although commission-based jobs generally involve sales, there are significant differences in job titles, industries, and levels of knowledge and skill required. Commission-based careers require a great deal of self-motivation to work independently on tasks that generate income.
When you think of commission, your mind instantly turns to the sales role (think a retail salesperson trying to convince you to buy that extra pair of jeans). Commission is popular in most sales jobs because their responsibilities are closely tied to the company’s revenue goals. Having the opportunity to earn a commission – sometimes a huge amount – motivates these individuals to achieve or get close to their quarterly or annual goals.
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But the commission can appear elsewhere as well. When hiring, you are often awarded a commission for each candidate you succeed in hiring – usually a percentage of their annual salary. As an account manager, you can earn commission on the clients you sell or renew for this year. In real estate you can get a portion of the money you earn from selling the property. In fact, commission in some roles makes up nearly all of your compensation, which means that your income is variable and depends heavily on your output.
Is a commission-based jobs good?
Of course everyone wants to earn more, and one of the easiest ways to earn more is to take on a commission-based job. Many people are running away from commission-based jobs because they feel that a steady paycheck is certain. The commission based job reward is more certain because it is directly proportional to performance.
The difference between a commission-based job and a fixed-salary job is that unlike a fixed-salary job, a commission-based job depends on the position or position of an individual, team, or group on the pay scale depending on how well they perform. The scheme focuses on compensating the individual based on their contribution to the business goal, not necessarily on the value of the position.
For workers who want to improve performance and have specific metrics to measure success, taking a commission-based job can show you how well you are doing.
1. Sales Manager
Sales managers are responsible for managing all sales-related activities of a business or organization. This can include setting sales targets, designating territories for sales representatives, developing pricing strategies, training employees, responding to customer complaints and solving problems. Sales managers may receive a salary as well as earn commission depending on the sales made. In 2018, these professionals earned a median salary of $ 124,220 with the ten percent earning more than $ 208,000. To become a sales manager, you’ll usually need a bachelor’s degree and experience working as a sales representative.
2. Real estate broker / sales agent
As a real estate broker or sales agent, you will be responsible for working with individuals who wish to buy or sell different types of real estate, such as homes, retail space or land. You will work closely with clients to help them understand the process of buying or selling real estate, trying to get a clear idea of ​​the type of property they are looking for or the price at which they will be comfortable selling, and then find real estate or buyers to meet clients’ needs. While the average salary for brokers and real estate agents in 2018 was $ 50,300, it is possible to earn more through commission, with the top ten percent of brokers earning more than $ 163,540 and the top ten percent of agents earning $ 112,610. . In order to become a broker or real estate agent, you will need to obtain a license through the state in which you intend to work.
3. Insurance sales agent
Insurance sales agents sell one or more types of insurance, for example, life, health, property, etc. They contact potential customers, explain features of different policies, and help clients choose plans. They also manage policy renewals and record retention.
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4. Travel agent
Travel agents plan, book and sell travel to individuals and groups. They can book transportation, accommodations, and activities, including group tours and day trips. Usually, they also arrange alternatives when plans change during the flight.
5. Stockbroker
Stockbrokers work with individual clients who provide them with investment advice and sell securities and commodities. In 2016, the median annual salary of brokers, excluding commissions, was $ 67,310, according to the Bureau of Labor Statistics, or BLS. Brokers spend a lot of time building their customer base, often indirectly calling from a list of leads and engaging in networking opportunities. Stockbrokers allocate investment advice based on a client’s financial resources, knowledge, and needs. Investment firms often pay stock brokers, also called stock and commodity brokers, a base salary, in addition to commissions and bonuses. Employers usually require at least a bachelor’s degree for this position.
6. Loan officer
Banks, mortgage companies, and credit unions employ loan officers to evaluate and approve loan applications. Most loan officers receive a commission on the loans they approve of, which incentivizes them to approve more loans, but many of them receive only a fixed salary, or a salary and commission. Commercial loan officers evaluate corporate loan applications, while consumer loan officers and mortgage loan officers handle applications from individuals. Consumer loan administrators generally need a high school diploma and on-the-job training. Business loan officers usually need a bachelor’s degree in business, finance, or a similar field.
