Earning A Salary Vs Commission-Only - Is It Ever Worth It?


Let’s talk about earning a salary. What’s a salary and the real reason behind companies paying you one. Is working on a commission-only basis ever worth it?

What Is A Salary And Why Do Companies Pay One?

A salary or wage is a remuneration paid by a company to an individual for services rendered.

And when you’re paid a wage you’re an employee, as we all already know.

And when you’re an employee, you sign a contract of employment.

Ok, so i’m fully aware that this isn’t rocket science we’re talking about here.

But here’s where it gets interesting…

That contract you’ve just signed will cover many points and one of those points will usually cover the fact that you are absolutely not permitted to work with anyone other than that company for the length of your agreement.

So, essentially when you agree to receive a salary and in turn sign that legally binding piece of paper, that company is purchasing your full time and dedication to their cause… period.

And listen, there’s absolutely nothing wrong with being paid for a service you provide or agreeing to sign a contract that meets with your approval.

What On Earth Is ‘Commission-Only’ And Why Would You Be Stupid Enough To Forgo A Regular Wage?

When we talk about earning ‘commission-only’ we use it in the broader sense relating to being self-employed and working for yourself.

When a person makes the decision to become self-employed, they’ve usually come from a background as a company employee, built up experience and learned the trade.

However, there’s one fundamental difference between employees and the self-employed. That difference is being entrepreneurial and having a strong desire to go into business for themselves.

For Example:

Someone that’s worked in Starbucks for a number of years, have successfully worked their way up into management and is also entrepreneurial, may wish to open their own coffee shop.

In the same respect, a sales executive who is a consistent top performer, has many years experience in their respective industry and is also entrepreneurial, will make the decision to become a self-employed sales rep.

The only difference between that person and the coffee shop owner is the service they provide and the way in which they operate.

If you’re interested in the way in which self-employed sales reps operate you’ll like this article: 10 Things To Understand When Working With Independent Sales Reps

There Is No One To Pay You A Wage When You Are Self-employed

Quite simply there’s no one to pay you a wage when you’re self-employed.

And if there was, we’d all be doing it…

Someone who runs their own business pays themselves a percentage of the profits that their company generates.

So technically, every single business owner that has been and will ever be, works on a commission-only basis.

Is It Worth Working On A Commission-Only Basis?

Simply ask yourself this question. Typically, who earns more, the boss or the employee?

It doesn’t make any difference what industry you work in, whether you provide a product or a service, work online, remotely or have a bricks and mortar store.

Whether your motivation is money, being in control of your own destiny and you have the experience, dedication and drive required to make it work, then it’s absolutely worth becoming self-employed and working on a commission-only basis.

What do you think? Leave a comment below…

Ryan Mattock

Co-Founder of CommissionCrowd... Let's get disruptive!