Base Salary or Commission? [Most Sellers Get it Wrong]

The short answer is no. But there’s a lot that goes into having the ideal income relative to your experience and skill level. Some employers will tell you that base salary is for noobs. Even some influencers recommend forgoing a base and shooting for uncapped commissions. It’s not that they’re ‘wrong’, it’s just that it’s way more complicated than that. 

We scrubbed the internet for the most sound advice for sales professionals.

This was the result 👇

The 50/40/10 Split

Let’s start with the safe bet.

The 50/40/10 split is pretty straightforward: 50% base, 40% Commission, and 10% incentives. Whenever you’re stepping into a sales job interview, always research ahead of time. It’s important to have a trajectory that you’re trying to follow before you even land the position.

Find out what the current market is like, and what your colleagues are making, and then apply it to the 50/40/10 split to work out a package that suits your plans.

There are several reasons why a salary + commission package makes a ton of sense. Consider that some sales roles require you to work with overseas markets, a job that comes with demanding tasks that probably aren’t even directly sales-related. There are also a lot of economic uncertainties and shifts that have taken place over the years that make salary + commission more feasible for most sellers.

Also, not everyone is a sales guru. And if you’re going commission-only, you’ll need to be a sales guru. Lastly, some companies are new to market with little to no groundwork done as far as market surveys, price benchmarks, established market policies, etc.

In these situations, never accept commission-only pay. 

Learn more about the 50/40/10 structure here.

Commission-Only - The Dark Side of Sales?

Going commission-only can be intimidating. Heck, it may even sound like a scam (in some cases it sort of is…).

Hear us out: there are salespeople out there who have transformed their careers through commission-only sales jobs. People best suited for this pay structure are usually self-starters, who don’t like taking too many orders and are experts at knowing when to be aggressive.

Leads won’t be falling into your lap and the company will leave you to your own devices (commission-only means their investment in you is low). 

The bigger opportunities are found in commission-only.

Influencers like Jeremy Miner are big on this pay structure. He goes as far as saying that he loses confidence in employees who, during their job interviews, demand a larger base as opposed to commission.

Is he being a bit dramatic?

Maybe.

But he does put his money where his mouth is.

After all, that’s how he started out in sales and he’s literally one of the best sellers in the world. We’d say if you’re looking for the thrill of challenging yourself, and you’d prefer huge opportunities over guarantees, freedom over being stalked by your manager, then this is the path for you.

Just ensure that you look into the product and how long it takes on average to close in that industry. Leave no stone unturned! 

Sales Q&A

AEs: How Important is Base Salary VS Commission?

Read more here.

It’s Time For That Dream Sales Job…💼

Looking for a new job opportunity in Sales? Search for the latest and greatest jobs here.

Looking to hire someone with great Sales experience? Post your job on The Sales Jam Job Board, here.