How sales reps are paid can vary by company and the type of sales they are involved with. Here are the Top 5 Common Ways Sales Professionals Are Paid.
Sales is unique for many reasons. One reason that either attracts people to it or a reason why people shy away from it, is how sales professionals are paid. Getting paid is not as cut and dried as other professions where you get your pay check every week.
In sales, there is a variety of different ways you can be paid, and the pay structure will vary based on the company you work for, what you are selling, who you are selling to, and other factors. How you are paid is also an important consideration for job candidates when comparing job opportunities and deciding whether or not to fill out an application. From a company perspective, how you choose to pay your sales reps can have a big impact on performance and your ability to attract and retain top sales talent.
Here are some common ways sales professionals are paid:
While this is the most straightforward method, there is little incentive for sales professionals to go above and beyond to increase how much money they bring home, but you will have a steady income. The con is your earning potential is capped.
Sales reps can take comfort in having a consistent income and there are incentives to increase performance to get a bonus. The con is that your earning potential can be capped.
This is perhaps the most commonly used pay structure in sales. Reps will have a regular salary, and commission is earned based on the number of sales achieved during your pay period. Top performers will be able to increase their income, and pay is somewhat based on performance.
Some sales professionals love this and others don’t. Pay is 100% tied to performance, and there is no base salary. You have complete control over how much you make – often with no cap as to how much you can earn, which is attractive to top sales reps.
Similar to the commission only structure, with the exception that commission rates will vary based on the volume of sales/meeting sales goals. The more they sell, the more you make. The one con is that how much money you bring home can be difficult to gauge.
SalesForce Search is a sales recruiting company which specializes in the recruitment and placement of sales professionals. We recruit sales people in every sector of the economy including, software, manufacturing, financial services and medical devices. Find the right sales person for your organization, start your search here.
Claire is a Western University graduate with a background in recruiting, sales and customer service. As a Recruitment Consultant, her goals are to place the best people in the right roles resulting in satisfaction for both the candidate and client.