Is Commission-Only REALLY A Scam?

Commission-only roles get a lot of stick. While 50% of people say they’re a complete scam, the other 50% say they’re very lucrative.?

Who do you believe??

Well, neither is wrong. We live in a world where, unfortunately, people can get scammed.?

In fact, the National Anti-Scam Centre in Australia suggests that “Jobs & Employment” scams are the 4th most devastating scams regarding financial loss.?

However, this doesn’t single out commission-only roles. It’s all roles, regardless of payment structure.?

Are Commission-Only Roles Scams??

Put simply, no. Legit commission-only roles aren’t scams. Yes, there are scams out there, like any job role. However, the payment structure isn’t.?

Commission-only is just another payment structure. However, instead of a “normal” or “hybrid” (Salary + Commission) salary, employees are only paid based on what they sell.?

For instance, imagine a car salesperson on a commission-only payment structure of 5% revenue. If they sell a car for $100,000, they’ll get $5,000 added to their pay packet.?

Why Do People Think Commission-Only is a Scam??

From personal experience, I believe two types of people enter the commission-only market:?

• Those that are good at selling and make a tonne of money.
• Those that aren’t good at selling and make little to no money.?

The 2nd option is typically the one to label commission-only as a “Scam”.?

I understand, also. You can get into sales without a degree and very little to no experience.?

Because of this, people usually think it’s “easy” and “anyone can do it”. However, that’s far from the truth.?

Adding to this difficulty, you’re under the pressure of creating your own salary. For most, this is stressful, and it can really impact your sales ability.?

But this doesn’t mean it's a “Scam”; it just means it’s a difficult role to succeed in. And yes, like all employers, they do have an impact on an employee's success.?

What Are “Good” Commission-Only Roles??

Not all commission-only roles are the same. In the market, there are some very good ones and, yeah, not-so-good ones. Again, it is the same as any other job market.?

But what makes a “Good” commission role??

First, you need to ensure they’re a legitimate company. If they’re legit, you reduce your chances of being scammed by 99.99%.?

Other than that, the “Good” roles are in companies that:?

• Provide high-quality leads.
• Give marketing materials.
• Cover all expenses.?
• Have a decent cost for the product/service.?
• Offer a liveable commission-only rate.?
• Have a good product/service.
• Include a short sales cycle.?
• Already have a successful sales program.?
• Are ready to scale their operations.?

Of course, some companies will perform better in some areas than others. However, it’s up to you to do your due diligence and determine whether the role is considered “good” based on the information you receive.?

Why Don’t I Think Commission-Only Roles Are Scams??

Well, I'm a sales recruiter for those who don’t know me. I’ve worked alongside businesses that have wanted to hire commission-only salespeople.?

And trust me, some of these businesses have remarkable systems in place. They have great lead generation, short sale cycles, above-average commission rates, and quality products/services that deliver on their promise.?

However, I’m not naive. I know some companies offer better commission-only roles than others. But it doesn’t mean they’re scams; it just means they might not quite be ready for salespeople of this type. And, some salespeople love this, while others don’t - it’s personal preference and depends on the situation.?

Nonetheless, a lot of the false “Scam” accusations can be avoided by knowing how to find high-quality commission-only roles.?

Finding Quality Commission-Only Sales Roles?

Regardless of job type or industry, finding quality roles requires careful consideration. If I were to try and find a commission-only sales role as someone who has never done sales, I’d undergo the following.?

1. Self-Assessment?

First, take a look at your strengths. Ask yourself:?

• Are you good at sales??
• Are you good at cold calling??
• Can you build customer relationships??
• Are you a better closer??
• What industries do you know a lot about??

This will give you a solid foundation of what you can or want to do as a commission-only salesperson. And this is very important nowadays, especially considering nearly 50% of employees wouldn’t “Wish their job on their worst enemy”.?

Also, think about your risk tolerance and goals. Commission-only sales can be lucrative, but it can also be devastating to the wrong people. So, make sure you feel comfortable moving forward and know what you want to achieve in this role.?

1. Target Job Search?

Next, you need to find commission-only sales jobs. This is literally 50% of the work. You may be able to find these jobs in your areas by headings over to the following job sites:?

• Indeed?
• LinkedIn?
• Glassdoor?

When here, use their search function and search for keywords like “Commission,” “100% Commission,” or “Uncapped Commission”. You also have several niche job boards you can look at.?

Alongside this, you can network and talk to recruiters like me.?

1. Thorough Research?

After your job search, you may have a list of companies. Don’t apply to all of them just yet. Carefully read their job description, understand their products/services, and read about their reputation.?

Also, if you need additional information about a job description, don’t be afraid to ask them. Companies that are hiring love candidates who care about that future, and one way you can show this is by asking them any questions you may have about the job description.?

During this research step, you’ll also get a good understanding of what’s out there. You may even find better opportunities than you thought were possible.

See, Commission-Only is REALLY not a Scam!?

As shown, commission-only sales aren’t a scam. Let’s be honest: a payment structure cannot be a scam. It’s impossible.?

Nonetheless, it doesn’t mean those looking for a commission-only role shouldn’t do their due diligence on a company. It’s always the safest bet.?

If you’re a company that doesn’t want to appear as a “Scam”, then you need a solid system in place. For more information about how we can help at Jayce Grayye Recruiting & Consulting contact us today.?