Living on Commissions

Living on Commissions

Discover practical financial management tips and career advice for commission-based sales professionals to help achieve stability and success.

Once out of school—whether you attended a traditional college or an online university—and into the real world, everyone has to earn a living. This mature reality has led many people to enter various professions, sometimes driven by passion and sometimes by circumstance. Workers of all ages fill the many positions offered by corporate and private businesses, keeping economies moving and growing.

One of the key roles responsible for generating a large portion of a business's revenue is the sales agent. This position goes by many different titles, ranging from business development associate and sales merchandise manager to sales director. If you are a sales agent, your compensation is performance-based, meaning your financial status is unstable and depends entirely on each sale you make. So the question is: How do you comfortably live on commissions? Read, practice, and apply the following steps to develop a more comfortable, worry-free financial management plan for the sales warrior in you.

1. Are you fully committed? Are you competitive? Are you hungry for success? Do you mind walking into an unfamiliar office and talking to strangers just to pitch a sale? Do you have the guts to make a cold call and speak directly to decision-makers? If your answer to any of these questions is no, then rethink your profession. You might be in the wrong career, which directly and strongly influences your chances of success.
2. Know yourself. Even if you are in the right sales job, you still have your limits, style, and strengths. Figure out what works best for you and focus on those strategies to consistently deliver the necessary results.
3. Do your math. Every company has its own rules and commission structures. Organize your calculations and know exactly how much you earn on every sale. Understanding your cash flow will make it much easier to manage your expenses.
4. Live within your means. Keep track of your expenses and set a monthly budget based on your cash inflow. Prioritize your mortgage, loans, and family obligations. If you make $5,000 per sale and average two to three transactions a month, keep your spending well within that limit. Avoid hasty, impulsive, and unnecessary purchases, as these habits can easily lead to a downward spiral that leaves your pockets empty.
5. Save for a rainy day. Save, save, save! Because of your financial instability, saving for the future must become a lifestyle. Ensure you have sufficient funds for everyday expenses and emergencies, ready and available when the time comes.
6. Grow your means. Living life to the fullest often requires financial resources. To enjoy life and spend quality time with your family, you must do everything you can to excel as a salesperson. As you close more deals and improve your standing within your company—and most importantly, with your clients—you will earn all the money you need for your usual obligations, and more.

No matter what title they hold, sales professionals have only one primary job description: to sell products or services. They are economic field warriors who do everything they can to secure the sale and meet their quotas. By following these steps and regularly enhancing your skills through online business classes, you can live comfortably on your sales commissions.