How’s it going guys? Wondering if a sales job is the right job for you? Well look no further!
As you can imagine, there is a friggin’ world of sales jobs out there, each and every one with different payment structures, perks and so much more. While we both know I can’t provide all of the differences that come with each job, this is the list that I use to determine if a job is right for me (Besides ‘how much of this can I sell’).
By the way, “friggin’” has officially been added to my dictionary.
Commission Structure
Now, with most sales positions the commission structure varies. This is can be determined by how competitive the company is, but also the types of products/services that you are offering. In my experience, selling supplemental insurance products, our structure has ranged from 30% for existing client sales to far more for new client sales. Ours was calculated based on APV, which is the Annual Premium Volume of the sale. Every product and every company is different.
Residuals
The first time I learned about residual income, was after reading Rich Dad Poor Dad (Check it out on my book list). The first time I learned the I could receive residuals on my sales, I needed a new pair of underwear.
For those out there who have monthly obligations, this is an extremely important factor. Residuals are typically provided on products that have recurring revenue (e.g. insurance products). A residual is a small percentage of the monthly revenue that your sale generates. These can add up extremely fast in cases, generating a base salary in it’s own way over time. Theoretically, when you begin earning enough in residual income on your sales, you can pay for the things you rent or mortgage on residuals alone.
Not every company offers residuals, but if you do have monthly obligations (which most of us do) than these can be a huge help.
Important Note
Some companies offer “lifetime” residuals as well. This means that if you leave the company (after certain milestones of course), than the residuals will continue to pay out every month. Don’t know about you, but I’m salivating.
Are You an Employee or a Self Employed Contractor?
This is another core factor. Part of the reason that I took my sales job, was that I was technically self employed as a contractor. This gave me a number of advantages.. and disadvantages to be fair.
As a contractor, I had the ability to work when I want and how I want. Obviously with a commission job, I was working 6-7 days a week making as many sales as I could. But, on some of my peak sales weeks I would hit my desired sales target early, and then take the rest of the day (or week depending) off. I also don’t need to consult anybody to get time off work, whether it’d be for leisure or for emergencies. This makes the job extremely flexible. This came in handy for me because I could schedule my appointments around university (so I could attempt to pay attention). The next HUGE advantage, is tax write offs. I will dive into this a bit deeper in the future, but you can truly save a friggin’ FORTUNE when you write off your business expenses.
Now there are drawbacks. Most notably, when it comes work benefits, you’re fending for yourself. Being self employed, you get a major lack of security, in terms of benefits but also in terms of pay as well. Depending on the company, if you don’t make sales, you ain’t getting paid. You also need to be very disciplined with your money. Typically you have a lot of business expenses, but also I learned the hard way, to SAVE MONEY FOR TAX SEASON. I set aside a portion of each paycheck in a bank account far far away so I’m not tempted to look at it — this way, when it’s time for the government to make their paychecks, I’ll have a nice cushion to fall on.
Mode of Work
Your mode of work can also be a factor. ‘Mode’ in this case meaning whether you are working remotely, face to face, in an office, or in the field. I can’t say definitely whether working remotely (on the phone usually) to make sales puts you at a disadvantage, but from personal experience most telemarketers don’t make it through the second sentence of their sales pitch. WITH THAT SAID, I have people in my very company, who make a VERY comfortable living selling insurance over the phone. I usually thrive working face to face in the field, as I get to feed off of the energy of the clients I meet in the places that I meet them.
I do have to mention, if you are working in-the-field, you’re expenses typically, can be astronomical (at least in my experience). We drove to homes, businesses, garages, sheds and doghouses all over our territory, and so between the car maintenance, gas and food there was a fortune to be spent (and made). Whereas at home, you’re biggest expense might be Skip the Dishes.
Inbound or Outbound?
While this won’t change how much you sell, it will change how much you have to work to make those sales. Inbound sales are when clients are calling you (e.g. car insurance — it’s legally required). Outbound, as you can probably guess is the opposite. You are out there, hunting down the sales yourself, leveraging every opportunity you get, like a cougar (pun intended).
Depending on the company, you might be paid more as an outbound sales rep, as there are more risks and costs involved. However, from personal experience, inbound sales people can be given base salaries (with additional bonuses depending), which offers a great deal of security.
All of this however varies from company to company, so keep an eye out.
Conclusion
All of these factors can determine how you’re paid and when you’re paid. All of these factors can change from company to company. In my experience, as an outbound sales, self employed contractor I absolutely love it. I incur a lot more costs of business, but it pays off with a more generous commission structure, flexibility with hours and mode of working.
Ultimately the decision is for you to make, because everyone’s goals are different. If you have a lot of current overhead costs (rent, bills, a family to take care of), than a job like mine can be very risky at first. If you can afford to take the risk, however, you can be rewarded greatly. A self employed position can also benefit give you more flexibility to spend time with your family, because you aren’t on fixed hours.
Don’t forget that sales is also seasonal and cyclical, meaning that the time of year alone can factor in how much people are buying or not — so perhaps a base salary could be much more safe.
In the end, find a job that can help you attain your goals and service your priorities. Whether that would be long term passive income, high scalable income up front, or freedom and flexibility to work.
I’ll see y’all out there!
What do you guys look for in a good sales job? Leave a comment below!