What Are Commission-Only Jobs?

Definition

Commission-only jobs are employment positions where compensation is based entirely on sales performance, with no guaranteed base salary or hourly wage.

Mechanics

How Commission-Only Works

• No base salary provided
• Earnings depend on sales volume
• Payment structure varies by company
• Typically requires meeting quotas

Common Structures

• Percentage of sales
• Tiered commission rates
• Draw against commission
• Team-based commissions

Warning Signs

Red Flags

• Unpaid training periods
• High upfront costs
• Vague commission structures
• Aggressive recruitment
• High turnover rates

Questions to Ask

• What is the average commission per sale?
• What percentage of employees meet quotas?
• Is there a base draw or guarantee?
• What are typical monthly earnings?

Risk Factors

• Income instability
• No guaranteed minimum
• Dependent on market conditions
• May require significant upfront investment
• High pressure environment

When Commission-Only May Be Acceptable

• Established sales professionals
• High commission rates
• Proven track record of success
• Clear, transparent structure
• Supportive training provided