COMMISSION-BASED JOBS: What Are Commission-Based Jobs

Commission-Based Jobs
Business Yield

For top performers, commission-based professions can be very profitable and interesting. Starting a work with commission pay may be the ideal choice for you if you have good interpersonal skills and the capacity to satisfy quotas. There are numerous commission-based job opportunities to pursue in a range of sectors. In this article, we outline the best commission-based jobs that you can either do online, part-time, or even with no experience at all. 

What are Commission-Based Jobs?

Commission-based jobs are those in which you are paid in part by commission, or remuneration is computed based on how many successful sales targets or quotas you accomplish in a certain time period. A commission-based job, for example, may allow you to keep a particular amount of the revenue earned by sales you make each month. There are several sorts of commission-based jobs, each with its own pay structure and computation process, such as:

#1. Straight commission

Jobs in which employees are paid totally on the basis of the sales they generate.

#2. Salary plus commission

Jobs in which employers set a base salary for employees and then add commission income based on sales generated.

#3. Salary plus bonus

Jobs in which employers set a base payment for employees with the possibility of additional bonus compensation if high-level goals are met.

#4. Variable commission

A compensation structure in which employees are given revenue directly deducted from sales generated once they have earned it.

Because the money from commission-based jobs are directly proportional to how well you do in your role, it might be difficult to take home a stable wage each month. Your remuneration is determined by your level of experience, expertise, job location, and client success. Working in service-related businesses or fields that deal with the buying and selling of high-priced commodities, such as property or land, for example, might be more lucrative than other commission-based jobs.

Regardless, if you are a top performer in your field or at your organization, such jobs can result in high compensation, security, and overall career happiness. In a commission-based profession, you can set daily or weekly goals for yourself to keep track of your commissions and ensure you’re hitting your own pay targets with the correct degree of self-discipline.

Commission-earners have a lot of leeway—there’s usually no cap on how much you may earn in a commission-based function, which means you can make as much as you like, even if your firm has a commission earnings limitation. While commission-based jobs are prevalent in corporate sales, you can find commission-based positions in a range of industries, including:

  • Finance
  • Insurance
  • Advertising
  • Real estate
  • Hospitality
  • Information technology

How Commission is Calculated

Employers utilize a variety of frameworks as the foundation for determining commission.

#1. Gross Sale Commission

The commission might be based on gross sales volume in its most basic form. A real estate salesperson, for example, sells a house and receives 1.5% of the sale price as a commission.

#2. Percentage of Profit

A percentage of the profit on an item that exceeds the employer’s cost can be used to calculate commission. For example, if a car costs $20,000 at the showroom, an automobile salesperson may receive 5% of the ultimate sales price over $20,000 in commission.

#3. Variable Commission

Variable commission schemes incorporate different rates of commission at different levels of sales or when certain targets are met. For example, a salesman might earn 3% on the first $100,000 in sales, 5% on sales between $100,000 and $200,000, and 7% on all sales above $200,000.

#4. Territory Sales Commission

Territory or group sales commission entails compensating all salespeople on a team if the team reaches or surpasses sales targets in their region.

Best Commission-Based Jobs

Taking a commission-based job might show you how well you are doing if you want to enhance your performance and have particular measures to gauge success. Here are some great examples of commission-based jobs:

#1. Travel agent

Travel agents are in charge of organizing, booking, and marketing vacation packages. They handle most trip arrangements and find suitable transportation, lodging, and activities for individuals and groups. Travel agents might specialize in local, domestic, or worldwide travel, and they frequently provide their clients with a number of options to pick from when making travel arrangements.

They may provide day trips, weekend getaways, or vacation packages of varying lengths. Furthermore, travel brokers may specialize in specific customer segments, such as adventure seekers, environmentalist travelers, or corporate visitors. The national average income is $49,013 per year plus a daily commission of $150.

#2. Advertising sales representative

Advertising sales professionals are in charge of selling ad space to businesses and people. They sell web, print, radio, and television advertising space to purchasers who wish to promote their products and services on these channels. Representatives are frequently employed by certain media firms that operate specific platforms, such as news organizations or radio networks.

Advertising sales professionals interact with clients and internal stakeholders, make pitches, monitor customer accounts, build client loyalty, analyze data, and present sales. Furthermore, representatives are frequently required to work under strict timelines in order to satisfy quotas. The national average pay is $52,774 per year plus $15,000 in commission.

#3. Sales Engineer

Sales engineering undoubtedly qualifies for one-of-a-kind sales professions that typically include some commission. These positions are typically found in the technology or manufacturing industries, particularly with organizations that provide customizable products or services.

These experts must have a high level of technical competence as well as salesmanship to convince a prospective customer that making a purchase is a good decision while also assisting them in adjusting the product or service depending on the customer’s technical specifications.

During the buying process, the sales engineer assists with the adjustments that the buyer desires, essentially tweaking the end result until it is right for that specific person or business. Depending on the firm, they may even spend time gathering specifics for entirely customized solutions.

#4. Insurance agent

Potential clients are sold several types of insurance coverage by insurance agents. They may specialize in one form of insurance, such as health, dental, medical, rental, homeowner, or life insurance.

Insurance agents will call potential clients, discuss policy specifics (such as benefits and costs), and assist clients in determining which plans are most suited to their needs. Insurance agents are also in charge of client satisfaction, policy renewal, and keeping track of sales or policy changes. The national average annual wage is $57,294.00.

#5. Financial advisor

Individuals’ financial needs are assessed by financial advisors in order to assist them in making key decisions about taxes, insurance, and long or short-term investment possibilities. Advisors work with customers to understand their financial goals, such as preparing for retirement or paying for college.

Then, utilizing statistics from a client’s personal finances, advisors do financial analyses and computations to give recommendations for reaching those goals. Furthermore, financial advisors may invest their clients’ money directly and actively oversee such investments to guarantee they are profitable. The national average pay is $69,852 per year plus $30,366 in commission.

#6. Sales consultant

Sales consultants examine a company’s needs in order to assist it in selling products or services to specific clients. They visit with clients, perform research, analyze market statistics, identify current challenges, and evaluate strategic intervention prospects. Consultants will then develop marketing plans to sell such products and assist businesses on how to best conduct promotional campaigns.

Furthermore, sales consultants are sometimes in charge of recommending how to train sales staff and enhance sales in retail locations. The national average pay is $70,260 per year plus $24,000 in commission.

#7. Recruiter

It’s critical to note that not all recruiters are paid on commission. Instead, this is more typical with outside recruiters that assist client organizations in finding professionals for difficult-to-fill roles. As a sort of commission, a recruiter often charges a flat fee or a percentage of the new hire’s yearly pay in certain instances.

Working as an outside recruiter entails a variety of responsibilities. Along with obtaining business from a client organization, you must also find individuals and persuade them that taking on the post you want to fill is a wise career step.

In many circumstances, more than just salesmanship is required. Understanding the types of occupations you hire for might also assist you find exceptional candidates for the roles.

#8. Insurance Sales Agent

Commissions are a significant part of an insurance sales agent’s income in the great majority of circumstances. Their primary responsibility is to persuade people to purchase various types of insurance, such as auto, home, and life insurance.

You may occasionally specialize in a single insurance category. Other insurance brokers, on the other hand, use at least a few, especially if one service is commonly bundled or related to another. For example, if you sell auto insurance, there’s a good possibility you also sell homeowners’ or renters’ insurance. Insurance sales agents typically earn roughly $54,940 per year, however, this is not always the case. Some even earn more than $124,030, which is quite astounding.

#9. Broker

Brokers facilitate large-scale business transactions in a range of industries. They function as a middleman between buyers and sellers, acting as a third party throughout the transaction’s implementation. Brokers typically represent either a buyer or a seller of a particular product or service. Brokers are in charge of advising clients on how to make profitable business investments in real estate, equities, mutual funds, land, insurance, and other areas.

Furthermore, brokers work diligently to create and maintain their client bases in order to foster consumer loyalty. They are also in charge of conducting administrative tasks such as creating financial records and following up with customers. The national average salary is $73,011 per year plus $42,000 in commission.

#10. Real estate agent

Property sales are facilitated by real estate agents. They can specialize in either commercial or residential properties, however, some agents alternate between the two. Real estate agents monitor the market, advise clients on market conditions, conduct showings, offer direction and advice, and aid in the purchase, sale, and leasing of real estate.

They spend money on commercials and create marketing efforts to market their available properties to potential purchasers. Furthermore, real estate brokers are frequently in charge of creating the paperwork required to complete property sales. The national average annual wage is $85,398.

#11. Talent Agent

When most people think of commission work, they don’t think of talent agents. However, that is essentially how it works. As a talent agent, you represent performers, writers, athletes, and others, and you usually get a cut when you assist them get work.

The amount you can earn varies greatly. However, $75,420 a year is not uncommon, and the top 10% frequently exceed $190,500.

What Is Commission-Based Job?

Commission-based jobs pays you based on the number of products or services you sell.

Is a Job Based on Commission Good?

Commission-only jobs may not be a good fit for someone searching for a consistent income week after week, month after month, year after year. Because your sales can soar (or sink) based on your overall success and the status of the market, you may get concerned about being able to earn a living wage on a constant basis.

What Industry Pays the Highest Commission?

These are some of the best sales jobs with big commissions:

  • Digital sales.
  • Insurance sales representative.
  • Wholesales representatives.
  • Pharmaceutical sales.
  • Sales consultant.
  • Medical devices sales representative.
  • Real estate agent.
  • Software sales.

Is 20% Commission a Lot?

A suitable commission rate is determined by the base income paid, the value of the sale, and the time required to complete the transaction. A commission rate of 20%-30% is commonly cited as a decent commission rate. In the United States, the average salary-to-commission ratio is 60:40.

Is 40% Commission a Lot?

However, the typical sales percentage is usually between 20 and 30%. What is a reasonable sales commission rate? Some businesses provide up to 40-50% commission. However, these are often sales representatives who demand more technical skills and experience, as well as a compensation system that is mainly based on commission.

How Do You Survive a Commission-Based Job?

All you have to do is be honest with yourself. Drive, work ethic, and excellent interpersonal skills are required for success in a commission-based career.

What Is a 100% Commission Job?

Contractors are paid on a 100% commission basis for what they sell. You pay them after they sell something, not before they sell something. As a result, their devotion to the agreed-upon sales process, sales cycle, and sales activity is simply non-existent.

Why Is Commission Better Than Salary?

While a basic wage provides stability, the commission is paid when sales targets are met or exceeded. Some employers may allow you to earn a greater commission if you continue to perform successfully.


Finally, all of the commission-based jobs listed above are worthwhile to explore. Just make sure you’re comfortable with any sales parts of the job, as these are a typical necessity, as well as how the commissions are structured. That way, you can get a terrific job with a reasonable salary.

Thanks for reading!


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