Why Independent Sales Reps Earn More Money Than Company Employees

Independent sales reps earn more money

In this article we explore the concept of being an Independent Sales Rep VS working as a salaried company employee. We also explain why independent sales reps earn more than employed sales professionals.

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What is the purpose of a wage?

Wages are used by companies to essentially purchase a person’s time. Not only is a wage used to purchase time, but employees are also then locked into a contract of employment which can prohibit a number of extracurricular activities such as taking an active role in other business related matters designed to earn that individual an income.

What is an independent sales rep?

Independent sales reps or commission-only sales agents typically begin their sales career in an employed position within a company. That’s where individuals learn their craft as well as become familiar with the particular industry sector(s) they serve.

Further down the line, entrepreneurial individuals may make the decision to break away from the constraints of employment and go into business for themselves. These independent sales people then aim to connect with companies whose product lines or services compliment the networks of contacts they have built up over the years.

An independent sales rep may carry multiple, non-competing lines that compliment their networks in order to maximise sales and earn more commission than possible when representing one company on an employed basis can achieve.

Multiple product lines/services = maximum profit

Independent sales people

Three Facts About Self-Employed Sales Professionals

3 facts about self-employed commission-only sales reps

Why do employees break away from the safety of a wage?

Why would someone forgo the safety of employment and work for themselves without a steady wage? Well, ask yourself this: Why would a chef open their own restaurant? Why would a Lawyer start their own firm? Why would a consultant start their own consultancy?

Entrepreneurial sales people are no different from any other business owner. They choose to break away from the constraints of employment and use their existing networks to sell complimentary products and services into.

commission only sales reps

Why Experience Matters

Self-employment isn’t for everyone. We also wouldn’t recommend becoming self-employed when first starting out in a sales role.

Being able to sell well is an art that needs to be mastered. The best way to learn how to sell usually begins by working as an employee in a salaried position. It’s important to be able to learn from others and working as part of a sales team in a competitive environment is arguably the best place to learn your craft.

What type of person becomes an independent sales rep?

First of all a sales person has to have an entrepreneurial streak and a desire to start their own business providing sales as a service.

The majority of successful independent sales reps have come from a long background in sales and have built up many industry contacts before pursuing their own self-employed career path. Again, it’s the same in every industry; a restaurateur probably won’t be successful without having an extensive background in the hospitality industry.

Being self-employed is certainly not all glitz and glamour and there are many hardships and tasks that either won’t come naturally which will need to either be learned or outsourced. Many of these tasks are usually taken care of by a company when working as an employee and can demotivate individuals who aren’t mentally prepared to run their own business.

What Type Of Companies Do Independent Sales Reps Work With?

There are a multitude of criteria that highly experienced independent sales reps consider before working with a company.

We cover those points in this article we recently published: 10 Things To Understand When Working With Independent Sales Reps

Ryan Mattock

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