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tough decision to make some guidance- salary to commission switch

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  • Mar 2nd, 2018 12:45 am
[OP]
Penalty Box
Dec 27, 2013
8003 posts
3989 upvotes
Toronto

tough decision to make some guidance- salary to commission switch

I have a bit of a tough decision to make and I need some guidance.

I currently make about $75k all in... full benefits, share purchase options, pension plan, etc. Pretty cush job for the most part.
I am about to be offered a position at another business but same industry, but I will essentially be 100% commission. The pay structure for the commission is sweet, and the potential to make lots of money exists. The problem is, I dont know exactly how hard I will need to work to make the same money that I am making now. I will get a salary for 6 months based on 55k annual income, while I get the rhythm of the new gig and there will be a signing bonus but working on it. i dont know all the benefits for the new gig either..

my current position ive maxed out and I cant seem to move up or out of the department. im tired of where i work, have grown resentful of management. i am pretty sure im also being held back by petty management tactics. management is condescending and demeaning.

assuming the benefits and pensions are the same or similar, what would u do?
would u switch to a commission job where the sky truly is the limit?
im confident in my abilities, but there is that lingering unknown... .... what if it doesn't work? what if Im not good enough? what if I fail?

I have ample savings to last me well over 3 years of not working and keeping my lifestyle the same, but it's easy to spend it than to save it... my attitude is failure is not an option... anyway these thoughts are battling out in my head and would like to hear other people that have made a similar switch, what did u do? how did it pan out for you? best idea ever? do u regret it?



couple of things I would add:
commission role, can work from home. will be provided laptop and cell phone.
8 replies
Deal Fanatic
User avatar
Dec 27, 2009
7427 posts
4703 upvotes
Victoria, BC
Hmmm, not a jump I would have the balls to make. Relying on commission can be tough.
[OP]
Penalty Box
Dec 27, 2013
8003 posts
3989 upvotes
Toronto
Chickinvic wrote: Hmmm, not a jump I would have the balls to make. Relying on commission can be tough.
i thought id get a lot of responses, but i think most people here are accountants and programmers.
Deal Fanatic
User avatar
Dec 27, 2009
7427 posts
4703 upvotes
Victoria, BC
daivey wrote: i thought id get a lot of responses, but i think most people here are accountants and programmers.
One thing I know for sure, they can be very quick to dump you if you work on commission. One of my ex boyfriends was in sales. It can be brutal.
Member
Dec 13, 2017
246 posts
156 upvotes
i wouldnt go 100% commision if you have a family
Deal Expert
Oct 6, 2005
16617 posts
2319 upvotes
daivey wrote: I currently make about $75k all in... full benefits, share purchase options, pension plan, etc. Pretty cush job for the most part.
I am about to be offered a position at another business but same industry, but I will essentially be 100% commission. The pay structure for the commission is sweet, and the potential to make lots of money exists. The problem is, I dont know exactly how hard I will need to work to make the same money that I am making now. I will get a salary for 6 months based on 55k annual income, while I get the rhythm of the new gig and there will be a signing bonus but working on it. i dont know all the benefits for the new gig either..

commission role, can work from home. will be provided laptop and cell phone.
Commission doesn't mean you forgo your salary - I would never take a 100% commission role. Say your base salary is around 100K, OTE should be around 150 - 250K for the job (assuming this is B2B sales). If this company is any good, you should get full benefits including stock plan, pension, health, dental, like any other employee.

You should get more details about the company, industry, how long it takes to close a deal, verify your quota, sales plan details, PCR (commission rate), how much business the company has, what type of products you're selling, what competitors, etc.

Scope everything out - because the company can say you're going to make killing, but you end up with a dud product and therefore no money.
Deal Fanatic
User avatar
Nov 2, 2013
5558 posts
1424 upvotes
Edmonton, AB
DontCareyou wrote: i wouldnt go 100% commision if you have a family
Unless you have other income and savings... Life isn't fair, but it's fair when it comes to these things... no risk no return Smiling Face With Open Mouth

In our field commission is a common form of compensation - usually 25-30% of successful business for the client. But over the year, incomes can range from anywhere from $40,000 to $150,000... or, $200 - 1000/day, that is you get something.... 200 the low end of being in an easy, stable Mon-Fri 40 hours/week gig.
Consultant, Operator/Trucker
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Member
Dec 11, 2013
471 posts
359 upvotes
Toronto
If you're truly confident in your abilities, you should be pushing for commission every time.

I was offered salary + bonus for my current job. I looked at the total pay package and the performance target, and asked for scaled commission instead. I'm currently making about 60% more than they were expecting to pay, but that's because my targets are equally being exceeded. Everybody wins.

If you had the option to take a salary instead for this job, and would take that option, stay where you are. The thing with commission is that you can't lie to yourself: Either you truly believe you can do it, or you don't.
Deal Expert
Aug 2, 2004
33812 posts
7453 upvotes
East Gwillimbury
I’m on commission. Similar to @jflash20 I would prefer to have a larger commission and a smaller base salary. I would take 100% commission if the percentages were right.

Based on what you’ve provided, if you have confidence in yourself, I would go for it. But if you have reservations, then renegotiate and ask for a split on commission and base. Start with a 50/50 split based on $90,000

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